STORING 

ITS ECONOMIC ASPECTS 
AND PROPER METHODS 



BY THE SAME AUTHOR 



A COMPANION VOLUME 

PURCHASING 

ITS ECONOMIC ASPECTS 
AND PROPER METHODS 



252 Pages 6X9 Postpaid $3.00 
112 Charts, Diagrams and Forms 



STORING 



ITS ECONOMIC ASPECTS 
AND PROPER METHODS 



BY 

H. B. TWYFORD 

OTIS ELEVATOR COMPANY 

AUTHOR OF " PURCHASING: ITS ECONOMIC ASPECTS AND 
PROPER METHODS" 



WITH 
ILLUSTRATIONS AND FORMS 




NEW YORK 

D. VAN NOSTRAND COMPANY 

25 Park Place 

1918 



lo 



D 



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COPYRIGHT, I918 
BY D. VAN NOSTRAND COMPANY 



11-1151 



THE-PLIMPTON-PEESS 
NORWOOD • KASS'H'S'A 



JAN -2 






•c;.;, 511 205 



Aa< 



PKEFACE 

SOME of the most momentous problems before 
business men to-day calling for solution are those 
connected with storing raw materials and manu- 
factured articles of every kind. Situations have 
arisen in the recent strenuous times which have made 
questions regarding storage the most prominent issue 
in many commercial transactions. Many fortunes 
have been made and likewise many lost in storing 
goods. Any business man who can solve storage 
problems correctly is assured of success. 

Into every form of commercial activity which in- 
volves the retention for long or short periods of mate- 
rials and supplies is penetrating the new importance 
of storing. It is not a new problem, but it has at- 
tained a new importance and unobtrusively, perhaps, 
but none the less surely, it is rapidly and forcefully 
compelling attention. To some extent this is due 
to more intensive methods of figuring costs in so far 
as they affect storage problems. These costs have 
a vital, and oftentimes a determining, influence on 
the other aspects of storing which are associated with 
supply and demand. 

To store or not to store has got to be settled on 
a more scientific basis, and this will be the remedy 
for some of the irregularities in supply and demand. 
Irregularity in the supply of material is not always 
owing to actual shortage or surplus, but to hesitancy 



vi PREFACE 

to store by some concerns and a tendency to exces- 
sive storage by others. These conditions are caused 
by inability to solve properly the storage question. 
Mere price fluctuations do not create shortages, 
except as they may be allowed to influence one's 
buying and storing policy. The question is deeper 
than just one of price, lack of labor, car shortages, 
freight embargoes, and other factors, but all these 
have brought storage problems more prominently 
to the front. 

Every business needs a certain amount of raw 
material, or manufactured articles, or supplies. For 
successful operation there must be sufficiency, and 
there must not be lack. Every dollar's worth of 
goods carried in stock beyond the sufficiency point 
creates an expense beyond the needs of the business, 
and to that extent decreases the profits. Insufficiency 
endangers the smooth working of a manufacturing 
plant, which might be compelled to close down, or 
temporarily suspend the operation of its production 
department, thereby entailing severe losses. And 
a supply house unable to furnish from stock articles 
which it is supposed to carry suffers losses both tan- 
gible and intangible. 

Too often the storekeeper is looked upon as a man 
whose duties are exclusively physical. He is not 
supposed to have a thinking job. The position of 
storekeeper needs better recognition; it needs recog- 
nition on a somewhat different basis to that which is 
usually accorded it. Sufficient consideration has not 
been given to the potentialties of the keeper of the 
stores. He is in complete control of a very large 
proportion of the wealth of many concerns. If he is 



PREFACE vii 

not in complete control, it is because of lack of ability 
and vision on his part, or because he is not given a 
standing commensurate with that to which he is 
entitled. 

Everything held in storage is a form of wealth. 
If it were not there would be no logical reason for 
storing it. Raw materials and manufactured goods 
are wealth in its best and truest sense, because they 
are the product of, and represent the industry of, 
a nation or community. Money, stocks, bonds, and 
other forms of wealth may not always do this. All 
wealth is, or should be, actively utilized to produce 
other forms of wealth. Inactive or quiescent periods 
are unavoidable with the property under considera- 
tion. It takes also the form of bulk; it needs space 
and storage capacity; it must be guarded, protected 
and controlled. Records of quantities and values 
must be kept. It is some of the problems connected 
with these questions that I have attempted to eluci- 
date in the following pages. 

H. B. TWYFORD 

New York City 



FOREWORD 

Acknowledgment is tendered to the undermentioned 
concerns who furnished the material from which the 
illustrations of storeroom equipment and appliances 
were made. 

Barrett-Cravens Co Multi-truck. 

The Berger Manufacturing Co. . Shelving and racks. 

Columbus Lift Truck Co Lift truck. 

Elliott Fisher Co Bookkeeping machines. 

Mathews Gravity Carrier Co. . . Conveyors. 

The National Scale Co Counting machines and scales. 

The New Britain Machine Co. . Racks and tote boxes. 

The Plimpton Press Elevating truck. 

C. J. Root Co The Root counter. 

The Standard Scale Co Counting machines and scales. 

Acknowledgment is also tendered to Otis Elevator 
Co., H. W. Johns ' Manvelle Co., Warner Sugar 
Refining Co., and Jeffrey Manufacturing Co. for 
permission to reproduce storeroom forms. The reader 
should bear in mind, however, that the discussion is 
confined to generalities and does not describe specif- 
ically the routine followed by any of the concerns 
mentioned. 



CONTENTS 

Chapter I 

GENERAL CONSIDERATIONS „„„ 

Wealth in Storage 1 

Commercial Storage 2 

/Purpose of Storing . 2 

Disadvantages of Storing 4 

Balancing Storage Considerations 4 

Relation between Buying and Storing 6 

Chapter II 
ECONOMIC QUESTIONS CONNECTED WITH STORING 

' Distinction between Storing Material for Manufacturing and for 

, Other Purposes 8 

v The Speculative Element in Storing 10 

Storage Investments 10 

' Changes in Values during Storage Periods 11 

Storage Costs 11 

v Storage Profits 14 

Market Prices and Inventory Prices 17 

Losses in Storage 18 

The New Importance of Storing 19 

Indulging in Extremes 20 

Scientific Storing is Safe and Sane 21 

Chapter III 

ECONOMIC QUESTIONS CONNECTED WITH STORING 

{Continued) 

i The Time Element in Storing 23 

* Psychology in Storing 24 

Obsolete Materials 25 



x CONTENTS 

What do "Maximum" and "Minimum" Mean? 26 

Fixing the Minimum Limit 28 

Fixing the Maximum Limit 29 

Purchasing Problems and the Storeroom 32 

Production Problems and the Storeroom 33 



Chapter IV 
SPECIFICATIONS, DEFINITIONS, AND STANDARDIZATION 

General Remarks 35 

Technical Specifications 37 

Correct Commercial Definitions 38 

Illustrations of Definitions 40 

What the Storeroom can do in Standardizing Definitions .... 45 

Obtaining Proper Definitions and Method of Using them 47 



Chapter V 
LOCATION AND EQUIPMENT OF STOREROOM 

Location 51 

Proportion 52 

Equipment 53 

Bins and Shelving 54 

The Closed Type of Bins 58 

Open Shelving 60 

Racks 63 

Utilizing all Available Space 65 



Chapter VI 
APPLIANCES FOR USE IN THE STOREROOM 

Movable Equipment 67 

Counting Machines 70 

Weighing Machines and Scales 71 

Trucks 76 

Gravity Conveyors 89 

Mechanical Aids 95 



CONTENTS xi 

Chapter VII 

MANUAL OPERATIONS 

Dual Nature of Storeroom Work 97 

General Considerations 98 

Counting 100 

Hand Counting 101 

Counting by Weight and Estimate 102 

Even-balance Counting 104 

Counting with Proportional Scales 105 

Automatic Counting Machines 108 

Summary Ill 



Chapter VIII 

CLERICAL WORK — INVENTORIES 

The Stores Records 113 

The Stores Ledger 114 

Machine Bookkeeping 115 

The Physical Inventory . 116 

The Perpetual Inventory 120 

Summary 121 

Correct Inventorying 121 

Other Considerations 124 

Values and Stores Inventories 126 



Chapter IX 

THE STORES DEPARTMENT 

The Storekeeper 130 

Sphere of Usefulness 131 

Relations with other Departments 132 

Catalogues and Information 134 

Charts and Diagrams 142 

Personnel of the Stores Department 142 

Outline of Work • • • 14 6 



xii CONTENTS 

Ghapteb X 
RECEIVING MATERIAL 

The Delivery Point 148 

Tracing Shipments 149 

Getting Delivery 150 

Receiving Material at Destination 153 

Chapter XI 

INSPECTING AND PLACING MATERIAL IN 
STOREROOM 

Inspection and Examination 164 

Inspection before Delivery 165 

Inspection after Delivery 165 

Receiving Material into Storeroom 168 

Placing Material in Receptacles 170 

Material Returned to Stores 171 

Scrap sent to the Storeroom 172 

Storing Stationery 173 

Storing Finished Product 175 

Chapter XII 
DELIVERIES FROM STOREROOM 

General Considerations 177 

Requisitions 178 

Issuing Articles in Sets 180 

Shop Orders as Requisitions 182 

Shortages 184 

Apparent Shortages 186 

Issuing Supplies 189 

Routine Clerical Work 190 

Overlooking the Minimum 191 

Purchase Requisitions 193 

Summary 193 

Index 197 



LIST OF GHARTS, DIAGRAMS AND FORMS 

FIGURE PAGE 

1. Diagram indicating additions to cost of material placed in 

storage 5 

2. Index card for specifications 38 

3. Standard definition for washers 40 

4. Standard definition for rivets 41 

5. Method of defining carbon brushes 42 

6. Method of tabulating part numbers ....;... 43 

7. Method of defining terms used in connection with parts of ap- 

paratus 44 

8. Card for recording standard definitions 48 

9. Perpetual inventory card or sheet showing method of recording 

standard definitions 49 

10. Showing method of lettering and numbering aisles .... 53 

11. Illustration showing the arrangement of various sizes of com- 

partments from the same size units 54 

12. Showing type of bin extending full height of room .... 55 

13. Showing assembling of a lower type 56 

14. Showing wide aisle to permit drawing long articles from bins . 57 

15. Showing flexibility in arranging the sizes of bins .... 58 

16. Showing details of construction of closed type of bin ... 59 

17. Illustration of plain shelves 60 

18. Plain shelves with fronts attached converted into bins ... 61 

19. Type of closed rack for material of uniform length .... 62 

20. New Britain Stock Rack 63 

21. WaU type of rack 64 

22. New Britain Revolving Rack 65 

23. Beam of an automatic counting machine 68 

24. Counting machine of the counter type . 69 

25. " " " " portable floor type 70 

26. " " " " dormant type 71 

27. " " " " portable type 72 

28. Weighing machine of the dormant type 73 

29. Weighing scale with dial 74 

30. Heavy type of weighing scale with double faced dial ... 75 

xiii 



xiv LIST OF CHARTS, DIAGRAMS AND FORMS 

FIGUKE PAGE 

31. Plimpton Elevating Track 76 

32. Method of using old-style track 78 

33. Method of using elevating or lifting track 78 

34. Columbus Lift Track, without platform 79 

35. " " " with platform . 79 

36. The Barrett Multi-track 80 

37. Showing stacking on platforms 81 

38. Tote boxes moved on platforms 82 

39. Storing steel filing equipment with multiple lifting trucks . . 83 

40. Handling tote boxes filled with castings 84 

41. Racks built on platforms 85 

42. Handling cases filled with small parts 86 

43. Large number of cases of cigarettes which can be handled on 

elevating tracks 87 

44. Platforms arranged with special racks for carrying Edison 

records 88 

45. Showing how the gravity conveyor can be adapted to curves and 

other unusual conditions 90 

46. Boxes of limes stacked at the rate of sixteen per minute with 

the use of the conveyor 91 

47. Conveying to the storeroom cases of glassware rapidly and with- 

out breakage 92 

48. A straight run to the storeroom 93 

49. Conveying cases of syrup 94 

50. Automatic counting of small parts .100 

51. All sizes counted in any kind of container 103 

52. The work of counting can be done by boys or girls . . . 105 

53. Illustration of counting tubes or rods 106 

54. The Root Counter 107 

55. Stacking barrels can be used to great advantage .... 108 

56. Stacking tote boxes made by the New Britain Machine Co. . . 109 

57. Storeroom rack designed to accommodate the tote boxes shown 

in Figure 56 110 

58. Tote boxes of the resting type Ill 

59. Elliott-Fisher Bookkeeping Machine .115 

60. Perpetual inventory for showing method of inserting standard 

definition of the article 118 

61. Perpetual inventory form, alternate to Figure 60 .... 119 

62. Perpetual inventory form of the loose-leaf type used by H. W. 

Johns Manville Co 123 

63. Verification card used by the checkers or auditors .... 125 



LIST OF CHARTS, DIAGRAMS AND FORMS xv 

FIGURE PAGE 

64. Perpetual inventory form with columns for recording values . 127 

65. Method of recording data obtained from catalogues and orders 

placed 133 

66. Method of recording information on sheet copper 135 

67. Showing method of recording contract date and consumption . 137 

68. Recording information regarding weight of wire 138 

69. Extract from catalogue with data on steel collars 139 

70. Index card for catalogues 140 

71. Index card for catalogues under name of manufacturer . . . 141 

72. Chart showing variations amount of cotton waste issued by 

storeroom 143 

73. Diagram showing relation of the various storeroom operations 

to the perpetual inventory 145 

74. Form for requesting information regarding shipment of ma- 

terial 151 

75. Form for notifying departments that material has arrived . . 153 

76. Form to advise shipment of material requisitioned by outside 

storerooms 154 

77. This requisition bears on the reverse side spaces for recording 

receipt of material 157 

78. Reverse side of copy of order for recording receipt of material . 158 

79. Supplementary form to Figure 78 for recording partial receipts . 159 

80. Receiving report in triplicate 161 

81. Reverse side of order, used for recording shipments and corre- 

spondence 162 

82. Form used by inspectors for making reports 166 

83. Form for reporting results of physical or chemical tests . . 169 

84. Form for use when material is returned to storeroom . . . 171 

85. Form to accompany all scrap sent to storeroom .... 172 

86. Report of material or scrap to be sold 174 

87. Requisition on storeroom 178 

88. Requisition on storeroom 179 

89. Storeroom requisition 181 

90. The last section of this is used for withdrawing material from 

stores 183 

91. Shortage ticket 185 

92. Used when insufficient material has been drawn from the stores 187 

93. Requisition for supplies 189 

94. Requisition on purchasing agent 192 

95. Storekeeper's requisition on purchasing agent 194 

96. Form of requisition on purchasing agent from departments . 195 



STOKING 

CHAPTER I 

General Considerations 

Wealth in Storage 

THE implication to be drawn from the fact that 
an article or commodity is being stored is that 
the thing in storage has some value. If this were not 
the case there would be no logical reason for storing 
it. Therefore everything which is held or retained 
for long or short periods is a form of wealth, and 
economic reasons demand that all wealth be properly 
guarded, controlled, and recorded. 

The earth itself is one vast storehouse of untold 
riches, great quantities of which are being taken out; 
still larger quantities are undiscovered, and very 
large quantities are discovered but undeveloped. 

All forms of wealth, if properly utilized, produce, 
or are used in producing, other forms of wealth. For 
example, water stored in a reservoir is essential to 
the existence of the people and preserves the health 
of those in the communities it serves, thus adding 
to the wealth of the nation as represented by the 
health of the population. Wealth in the shape of 
grain is stored in elevators, and coin and bullion in 
the vaults of banks, but discussion of the questions 



2 STORING 

regarding the storage of these things does not come 
within the scope of what is contemplated in the pres- 
ent work. 

Commercial Storage 

The problems it is proposed to discuss are those 
connected with commodities, materials, and articles 
acquired for the purpose of operating any commercial 
undertaking, and are consumed in the process, such 
as coal, lubricating oils, stationery, etc.; or which 
are acquired for the purpose of reselling under one 
of the following classifications. 

1. In the same condition as purchased. 

2. As a component part of an assembled machine 

or article. 

3. After manipulation by some manufacturing 

process which converts the material into the 

finished product of the factory through which 

it passes. 

Storage problems such as those indicated are not 

new, but they have attained a new importance because 

of the closer control which is being exercised over 

all forms of wealth, because of the desire for the better 

ordination of the economic features connected with 

the conservation, handling, and distribution of wealth, 

and because of the growing demand which exists 

for a wider knowledge of the factors which have an 

influence on wealth in its idle or quiescent periods. 

Purpose of Storing 

To obtain the greatest benefits from any form of 
wealth it must be kept in a state of activity, and if 
a supply in unbroken continuity could be secured of 



GENERAL CONSIDERATIONS 3 

all goods, articles, and materials required by the 
operations of business, little or no storing would be 
necessary and an ideal condition would exist, because 
the wealth of the country would be incessantly at 
work or in a state of activity, with no idle periods. 

Owing to irregularity in the output of commodities 
and manufactured articles, and to the fact that they 
are used or consumed in localities at varying dis- 
tances from the point of origin, with the attendant 
uncertainties and delays in transportation, it becomes 
necessary to accumulate stocks of materials and 
articles. These stocks may be held where produced, 
or at or near the point of consumption. 

Having these stocks available facilitates the dis- 
tribution of articles in daily demand and enables 
commercial operations and manufacturing to be car- 
ried on without undue delays and interruptions. 
A manufacturer, for instance, can maintain a uniform 
rate of production in spite of fluctuations in demand, 
if he stores his surplus output during the dull seasons. 
Working under these conditions he can operate his 
factory on a more economical basis than if he were 
operating it for certain periods at twenty per cent of 
its capacity, at other times at sixty per cent, and 
possibly during periods of unusual stress working 
overtime. 

Another object in storing goods, merchandise, and 
commodities is that it is sometimes possible to pur- 
chase these things when they are not needed for 
immediate consumption at very favorable prices or 
prices lower than normal. It then becomes necessary 
to hold them until such times as they are needed for 
manufacturing purposes or a resale is effected. 



4 STORING 

Disadvantages of Storing 

In the preceding paragraphs good reasons have 
been briefly stated in favor of storing, but there are 
equally good and cogent reasons against storing, 
and these reasons are at times so strong as to com- 
pletely outweigh the advantages. 

To place any article in a storeroom means space 
must be provided for it and space costs money. The 
goods must be insured, they must be protected, they 
must be handled at least twice, once in going in and 
again in going out of the storeroom. They may be 
of a perishable or semi-perishable nature and are liable 
to physical deterioration. They are liable to de- 
preciation in market value. The money invested 
in them is in a state of obsolescence after they are 
paid for and during the period they are at rest in the 
storeroom, and loss of interest is incurred on the 
money invested. 

Balancing Storage Considerations 

The crux of the storage problem lies in the consid- 
eration of the advantages and disadvantages. Any 
business man finding the correct solution and acting on 
it is assured of success. Many business failures can be 
attributed to overstocking and loose storage methods, 
while many concerns have successfully passed through 
crises and critical periods because of their efficient 
storage policy. Foresightedness, good judgment, and 
proper calculation of all the features outlined and 
many more are essential to successful storing. With- 
out these the consequences may be disastrous. 

The significance of the question whether to store 
or not to store has been compelling attention largely 



TRANSPORTATION CHARGES 



COST OF MATERIAL 
AT POINT OF SHIPMENT 



INTEREST ON MONEY INVESTED 
IN MATERIAL IN STORES 



COST OF CLERICAL WORK 
IN KEEPING RECORDS 



COST OF HANDLING IN 
DELIVERING FROM STORES 



LIGHT AND HEAT 



INSURANCE ON BUILDING 
EQUIPMENT AND CONTENTS 



DEPRECIATION ON 
BUILDING AND EQUIPMENT 



INTEREST CHARGES ON FIXED 
AND MOVEABLE EQUIPMENT 



RENT OR INTEREST CHARGES 
ON BUILDING 



SORTING AND PLACING 
ON SHELVES AND RACKS 



DELIVERING TO STOREROOM 



TRANSPORTATION CHARGES 



COST OF MATERIAL 
AT POINT OF SHIPMENT 



Figuke No. 1 — The cost of an article which passes directly from the supplier 
to the user is covered by the first column but if it is placed in the stores 
its ultimate cost to the user is increased by the items listed in the second 
column. 



6 STORING 

because of better methods of figuring costs and a 
better realization of these costs, especially in con- 
nection with storage. Unobtrusively but none the 
less surely this issue is forcing attention to all the 
problems associated with it. The subject is of vital 
interest to every manufacturer, every jobber, every 
supply house, in fact to every business concern buying 
goods and retaining them for long or short periods. 

Situations have arisen in the recent strenuous 
times which have made storage questions the most 
prominent issue in many commercial transactions. 
It is only necessary to peruse the daily papers, trade 
publications, and technical press, to realize the im- 
portance of this. Under-production, shortages, freight 
embargoes, and other unusual conditions occur and 
reoccur with such frequency as to be almost normal. 
Buyers who may have been anticipating their actual 
needs by one month have been compelled to look 
ahead three months, six months, and even twelve 
months or longer. Storage considerations have an 
important bearing on these purchases. 

Many buyers who have been depending on getting 
their supplies direct from the mills have had to fill 
their requirements from supply houses and local 
stocks. In all such cases they must pay the storage 
costs and the expenses of handling incurred by the 
dealer, and it is essential for the buyer to know some- 
thing of these costs for him to properly determine 
the economy of a purchase. 

Relation between Buying and Storing 

Buying and storing, although distinct and separate 
functions in any business, are closely related in all 



GENERAL CONSIDERATIONS 7 

those cases where the goods do not immediately pass 
out of the possession of the purchaser. 

Determination of questions regarding storage are 
frequently controlled by conditions in the buying 
market. Conversely questions regarding purchasing 
are frequently determined by storage conditions. It 
will be necessary, therefore, in discussing the economic 
aspects of storing to refer to purchasing and market 
conditions. 



CHAPTER II 

Economic Questions Connected with 
Storage 

Distinction between Storing Material for Manufacturing 
and for other Purposes 

THE classifications mentioned in the last chapter 
have varying problems and need separate treat- 
ment, but apart from the strictly economic and com- 
mercial features there is not so much difference as 
to warrant separate discussion. In later chapters 
such matters as conveying, transporting, handling, 
and storing goods and materials will be discussed 
collectively in spite of certain distinctions between 
the various classifications and perhaps some minor 
differences and distinctions in the manual and clerical 
work connected with the operation of a storeroom. 

Primarily all business operations are conducted 
for profit, but in buying and storing goods the ques- 
tion of profit cannot be considered in the same manner. 
For instance, goods which are bought and stored for 
resale in the same condition as purchased are procured 
exclusively for the purpose of making a profit when 
the selling transaction is completed. Between this 
class of goods and material which is procured for 
manufacturing purposes there is the great fundamental 
difference that the latter class are dependent on the 
skill of the workmen and the manufacturing art to 



ECONOMIC QUESTIONS 9 

convert them into a product which can be disposed 
of at a profit. 

The profits of most manufacturing plants are de- 
pendent on the continuous and unbroken operation 
of their production departments, and the successful 
operation of these departments means that they must 
be supplied with raw material without cessation. 
Therefore it must be procured and stored in the req- 
uisite quantities to insure this. Sufficient quanti- 
ties must always be on hand and ample storage space 
must be provided. The cost of the material may 
be high and questions regarding the actual price paid 
may have to give way to the imperative necessity 
of maintaining a certain minimum quantity in the 
stores. 

These considerations do not apply in storing goods 
for resale purposes. If a buyer cannot see a sure 
profit he has the option of staying out of the market 
and allowing his warehouse to remain empty or he 
has the alternative of fining his storage space with 
speculative purchases. Whichever course he pursues 
he must take certain factors into consideration. If 
his storage space is vacant there are some overhead 
expenses being incurred such as rent, building in- 
surance, etc. On the other hand, if his storage space 
is fully occupied, there are additional overhead ex- 
penses, such as insurance on the goods, protection 
against loss by theft, protection against depreciation 
and loss of interest on the money invested. 

There are the main differences between storing 
material for resale purposes and manufacturing pur- 
poses, and these facts should be borne in mind through- 
out the discussion of storage problems. 



10 STORING 

The Speculative Element in Storing 

There is not always a well-defined object in storing 
material. It may be bought and carried purely as 
a speculation, but even so the speculator cannot ignore 
or evade the carrying and storage charges. A manu- 
facturer or a jobber may speculate in purchasing and 
storing goods and at the same time have a good pros- 
pect or one more or less remote of using them in the 
production department or reselling them. 

It will be seen that there are many phases of the 
question as to why storage is resorted to and why it 
is necessary, but none of these affect the economic 
problems which are insistent factors, whether the 
storage is purely speculative, whether it is the result 
of well-ripened and balanced judgment, or whether 
it is caused by the necessity of maintaining a sufficiency 
of raw material for manufacturing purposes. 

Storage Investments 

All manufactured or semi-manufactured goods and 
all raw material are a form of wealth. It is wealth 
in its best and truest sense, because it is the product 
of and represents the industry of a nation or com- 
munity. Money, stocks, bonds, and other forms of 
wealth may not always do this. 

The property under consideration takes the form 
of bulk; it needs space and storage capacity. It must 
be guarded, protected, and controlled. Records of 
quantities and values must be kept. All of these 
features necessitate an expense outlay. Therefore 
the ownership of this form of wealth carries with it 
the responsibility of obtaining an increased price 



ECONOMIC QUESTIONS 11 

for it when ownership is transferred to cover the 
expenses referred to or a loss will be incurred. 

Changes in Values during Storage Periods 

Changes may occur in the monetary value of goods 
in storage through market fluctuations. An appre- 
ciation in the price is naturally very desirable, and as 
already stated storage is often resorted to for the 
purpose of holding certain goods until the advanced 
price can be secured. Conversely, there may be 
depreciation in values, but good judgment and fore- 
sightedness can largely prevent this. 

It is a common fallacy that all goods in storage 
are depreciating in value, because of the items of 
expense already referred to. This is far from being 
the case. The expense of storing adds to the cost of 
goods; it does not depreciate values. The causes 
which make for degradation in values while material 
is at rest in the stores are depreciation in market 
prices and physical deterioration from natural causes 
or from carelessness in handling. 

Storage Costs 

In computing the cost of any article which is in 
storage every item of expense must in the last analysis 
be absorbed into the total. The primary object in 
all commercial transactions being to keep the cost 
of goods as low as possible, it becomes apparent that 
storage problems are of considerable importance. 

There can never be any fixed rules as to actual 
storage costs, but there are always certain factors 
which must be taken into consideration in determining 
the costs. The costs themselves will vary tremen- 



12 STORING 

dously and will be governed very largely by the nature 
of the goods, the location of the storehouse, the length 
of the quiescent period, the difficulties of handling, 
the necessity of protection from physical injury, and 
many other causes. 

There is first the permanent investment in build- 
ings to be taken into consideration, or if space is 
rented for storage purposes the rent is the first item to 
appear in storage costs. This item is subject to ex- 
treme variations because the character of material low 
in intrinsic value may require large areas, whereas 
valuable material may often be stored in small spaces. 
Location has an important bearing on this question, 
and it assumes some magnitude if it is in an expensive 
section of a city or in a congested district. Such 
a condition might make prohibitive the use of large 
areas, or it might render necessary the location of the 
stores in some less expensive section. 

Other factors are brought to the front in deciding 
the question of space. If it is curtailed to a point 
where it leads to a congested condition in the store- 
room, many inconveniences and delays will occur 
in handling the stock. It will mean that frequently 
material must be handled two or three times where 
only once would be necessary if space were ample. 
The lack of space and additional handling may cause 
physical damage to the stock. Only one result is 
possible from insufficient storage facilities and that 
is extra expense and added costs. 

The capital outlay on a storeroom includes an in- 
vestment in equipment. This equipment will vary 
almost as much as the building, the variations being 
governed by the character of the goods being stored. 



ECONOMIC QUESTIONS 13 

Both fixed and movable equipment is necessary and 
consists of racks, bins, apparatus for weighing, meas- 
uring, moving, handling, etc. All these must be pro- 
vided as conditions demand. 

Although no two warehouses or storerooms may be 
similar in size, location, or equipment, still there are 
well-defined rules for determining the overhead charges 
comprised in the capital outlay. In calculating stor- 
age costs this investment must be taken into consider- 
ation, with the attendant interest charges, depreciation, 
etc. These items are susceptible of accurate determi- 
nation. 

A factor, however, which cannot always be accu- 
rately determined or at least would sometimes need 
elaborate accounting calculations to arrive at a cor- 
rect figure, is the interest charge on the money in- 
vested in the goods, materials, and supplies in the 
stores. The credit periods arranged by buyers vary 
greatly, and in some cases goods might be paid for 
before entering the stores, while in other cases they 
may have passed out of the stores before any money 
is actually disbursed in payment. 

In a manufacturing plant raw material storage 
ceases as soon as it passes out of the raw material 
stores for manipulation in the shop, and factory 
storage costs can be figured up to that point. There 
is an investment and a corresponding interest charge 
on material while undergoing conversion in the shop 
into the finished product, but the storekeeping func- 
tion ends with the passage of the material out of the 
stores. This is also true of goods sold and shipped 
out of storerooms and warehouses. If strict accuracy 
were desired on this point, it would be necessary to 



14 STORING 

figure the exact amount of interest on the money 
from the time the cash outlay was made until the 
material was moved from the stores. The cost of 
borrowing money to carry goods in storage cannot 
be considered if proper allowance is made for interest 
on money invested in goods in storage, as this would 
simply be duplication of costs. 

Storage costs must bear their proper proportion 
of general burden and overhead expense; when these 
have been equitably divided and spread over an estab- 
lishment their effect on storage costs can be accurately 
determined. 

Insurance is another item of expense which for 
goods in stores should be segregated from the general 
insurance expense of an establishment. It is quite 
easy to average the value of the stock on hand and 
keep it amply covered, allocating to storage costs the 
exact amount of the premiums. 

Finally, all items of expense for which the store- 
room is directly responsible are a part of storage costs. 
These include salaries and wages connected with stores 
bookkeeping, and in receiving, handling, and delivering 
the stock. All stationery and appliances used exclu- 
sively in the storeroom should be charged accordingly. 

Storage Profits 

Appreciation in price is the only source from which 
a profit can be shown, and this appreciation must 
run at a faster rate than the storage costs to enable 
a profit to appear. If the activities of the sales de- 
partment of an organization result in disposing of the 
goods in storage at a profit, that is something quite 
apart from what happens to those goods during the 



ECONOMIC QUESTIONS 15 

quiescent period while they are lying dormant in the 
stores. The present discussion is confined to that 
period. 

By far the greatest number of transactions which 
involve the storing of goods for long or short periods 
are made with the prospect that the market price 
will remain stationary during the storage period, but 
purchases are often made with the expectation and 
hope that an advance will take place before a resale 
is effected. Nobody wants a decline to take place 
during the period under consideration, but there are 
many occasions when material and articles must be 
stored without too much weight being given to ques- 
tions of appreciation and depreciation in price. 

Some jobbing and supply houses have a policy of 
carrying a certain amount of stock to take care of 
their regular trade, and will do this in the face of un- 
rest and upheavals in market prices. Even if losses 
are contemplated through depreciation, it is considered 
better policy to take the risk of these rather than 
risk the loss of good customers. 

While market prices naturally influence the buying 
of raw material for a manufacturing plant, still there 
comes a time when this influence is counteracted by 
the necessity which exists of keeping a sufficiency 
of raw material in the stores to enable the produc- 
tion department operations to proceed without let or 
hindrance. Much greater losses would probably be 
sustained by a temporary stoppage of active manu- 
facturing operations through lack of raw material 
than from losses through depreciation in price. 

What becomes of the so-called profits in storing 
materials? From the point of view of the jobber 



16 STORING 

and supply house it is comparatively simple, because 
when a sale is made the profit can be absorbed into 
the profit and loss account; but what is the manu- 
facturer going to do who may have to maintain a 
stock of 50,000 pounds of sheet copper as a minimum 
for his factory requirements? This may be inven- 
toried one year at 30 cents per pound and a year later 
at 40 cents per pound. Such a condition has been 
quite possible in the recent strenuous times. 

If fluctuations in market prices are allowed to con- 
trol inventory prices, there is here an apparent profit 
of 10 cents per pound, equaling $5000. This, however, 
is far from being the case, unless during the interval 
between the inventories the price of all incoming 
copper had been at 30 cents, the price prevailing when 
the first inventory was taken. This is almost an 
impossible condition in a rapidly advancing market 
such as the change in price would indicate. What 
actually occurs is this: the copper in the stores when 
the first inventory was taken would be absorbed into 
the manufacturing costs at the price paid for it. All 
shipments of copper coming into the stores after the 
inventory would likewise <be absorbed into the pro- 
duction costs at the price paid for it. Shipments 
might come in during the year at 32, 34, and 36 cents 
per pound and the stock still maintained at a uniform 
level of 50,000 pounds. There are then only, the 
last receipts into the stores to be considered. Assum- 
ing that the price paid for the last 50,000 brought 
into the stores was 36 cents per pound and when the 
inventory was taken the market price was 40 cents, 
this would show a storage profit of 4 cents per pound 
or $2000. 



ECONOMIC QUESTIONS 17 

Market Prices and Inventory Prices 

The foregoing discussion brings to the front the 
subject of inventory prices, and there are many con- 
cerns whose customary methods are to adopt the 
market prices in compiling inventory values. This 
policy has all the elements of instability. "What 
goes up must come down" is a saying in the specu- 
lative world; and while the purchasing and storing 
of merchandise is usually far removed from specu- 
lation, still if there is any truth in the saying, then an 
inventory taken at the top of an unusual rise would 
be to a large extent fictitious and simply inflating the 
profits. The reverse would be the case after a severe 
downward movement of prices which would have 
a tendency to indicate losses not actually incurred. 

It is possible that the variations in prices over a 
period of years would be so slight that the prevailing 
prices could be used each time an inventory was made 
up. When conditions are unusual it does not seem 
that ordinary methods are applicable. Then, what 
should the man do who is carrying a heavy stock of 
raw materials and merchandise, and prices are fluctu- 
ating abnormally? This is a problem for the manu- 
facturer, wholesaler or retailer. 

During recent years nearly all prices have advanced, 
and most of these advances have been maintained at 
a level which would justify one in regarding the high 
prices as normal. Why, then, cannot an inventory 
be made up at existing prices and the profit and loss 
account credited accordingly? Even if a decline is not 
imminent, even if the exceptional price level has every 
appearance of stability, still there must come ultimately 
an easing of prices if not a rapidly falling market. 



18 STORING 

The conservative man can only treat abnormal 
rises in prices in one way as far as his inventory is 
concerned. He should figure that he has but half 
completed the transaction and that it is better not 
to consider the increases as permanent profit. He 
should consider that he is temporarily custodian of 
this profit, a part of which may remain with him if 
his judgment has been sound and no adverse con- 
ditions arise. 

Instead of crediting the advance to profit and loss 
account, it is better to keep a separate account of the 
" temporary profit." Should the high prices continue 
from one inventory to another until they become 
almost stable and normal, it may be permissible to 
consider part of the temporary profit as permanent 
profit, but a certain amount should be retained as a 
reserve against a decline that is inevitable. 

Losses in Storing 

Depreciation in prices is a factor already alluded 
to. Sound judgment in buying should reduce this 
to a minimum, but values will sometimes suffer from 
this cause, even when buying is done with the utmost 
discretion. 

Physical deterioration is a factor which varies with 
the character of the material. For instance, highly 
perishable goods can scarcely be considered in con- 
nection with storing. They must be disposed of or 
consumed promptly. There are many so-called semi- 
perishable articles and materials composed of fabrics, 
paper, leather, rubber, etc., which are liable to de- 
terioration, and some must have special protection. 
Even the harder metals are not improved by storing, 



ECONOMIC QUESTIONS 19 

although they may not deteriorate. There are many 
materials which are liable to injury from abrasion and 
handling. Others may suffer from rust or weather 
conditions. While great care may be taken to pre- 
vent depreciation in values from these causes, there 
is always a more or less intangible loss from them in 
storing. 

Sudden changes in fashions may render part of a 
retailer's stock a white elephant and entail a loss in 
disposing of it. For the manufacturer and whole- 
saler there is not so much danger, but new discoveries, 
processes, and developments may result in changes or 
improvements in a product which would render out 
of date or partially obsolete whatever stock might 
be on hand. The danger of this is naturally much 
greater in the case of manufactured articles than with 
raw materials. These evolutions, however, do not 
often come so suddenly that an alert buyer cannot 
protect himself. 

The New Importance of Storage 

Into every form of commercial activity which in- 
volves the retention for long or short periods of mate- 
rials and supplies of any kind is penetrating the new 
importance of storing. It is, perhaps, unobtrusive, 
but none the less sure. It is not a new problem, but 
it has attained a new importance and is rapidly and 
forcefully compelling attention. This is largely due 
to more intensive methods of figuring costs and the 
desire for a better realization of these costs, in so far 
as they affect storage problems. 

This brings into more prominent consideration the 
storage questions and forces decisions on a more 



20 STORING 

scientific basis, of whether to store or not to store. 
If one looks through the technical press or even the 
daily papers of recent times, plenty of evidence can 
be obtained of shortages of various goods and mate- 
rials. This is not always owing to actual famine, but 
to hesitancy to store by some firms and a tendency 
to excessive storage by others. These conditions are 
caused by inability to properly solve the storage ques- 
tion. Mere price fluctuations do not create short- 
ages except as they may be allowed to influence one's 
buying and storing policy. The question is deeper 
than just one of price, lack of labor, car shortages, 
embargoes, and other factors, but all these have 
brought storage problems more prominently to the 
front. 

Indulging in Extremes 

The storekeeper of a manufacturing establishment 
who is responsible for maintaining a sufficiency of 
raw materials may have become alarmed by tardy 
deliveries and if he is cooperating with a purchasing 
agent who is alarmed by rapidly rising prices a 
combination may be developed which illustrates one 
extreme. Reckless and unbalanced buying and stor- 
ing may result, and all the economic losses these 
involve will be suffered. 

The other extreme is represented by an indifferent 
or too complacent attitude on the part of the store- 
keeper and purchasing agent. As a consequence of 
this attitude many opportunities to replenish stocks 
are allowed to pass. In strenuous times greater 
watchfulness of the market and supervision of stocks 
is necessary or shortages will occur, and attempts 



ECONOMIC QUESTIONS 21 

will be made to cover these by hurried purchases 
from warehouses at prices much higher than those 
prevailing for mill shipments. 

Scientific Storing is Safe and Sane 

Probably safe and sane storekeeping is more essen- 
tial in a manufacturing establishment than in any 
other commercial activity. This is because of the 
imperative necessity of keeping the exact quantity 
of raw material on hand in advance of the production 
department's actual needs. Storage problems can- 
not be solved by chance or impulse; they are matters 
of calm deliberation and weighing of the advantages 
and disadvantages. 

The storekeeper does not want to do too much 
worrying about price fluctuations. Scientific rules 
are possible for storeroom operations and for deter- 
mining the maximum and minimum quantities to 
keep on hand. If the storekeeper does not maintain 
a rigid adherence to these rules the fundamental 
economic factors on which the rules are based are 
thrown to the winds. 

The storekeeper has to consider and carefully 
weigh his storage costs in relation to his maximum 
and minimum quantities. To commence pondering 
whether certain price fluctuations warrant his increas- 
ing or decreasing his stock is dangerous because it may 
bias his judgment on purely storekeeping problems. 
It is better to let the purchasing agent deal with 
questions of price fluctuations and market conditions. 

When the high and low limits have been definitely 
fixed is the proper time for other factors to be taken 
into consideration, but until they are fixed external 



22 STORING 

considerations should not be considered, because the 
limits are purely problems of internal management. 
It may become necessary at some time to consider 
the advisability of disregarding the safety limits set 
by the inexorable demands of the production depart- 
ment and the economic factors connected with good 
storage. This will be discussed in the next chapter, 
but when such occasions do arise it is because of pur- 
chasing problems. It is then that the storekeeper 
must be called into consultation and he must be pre- 
pared to demonstrate his storage costs and problems 
as an aid and assistance in arriving at a decision 
regarding the contemplated departure. 



CHAPTER III 

Economic Questions Connected With Storage 
(Continued) 

The Time Element in Storage 

TIME is the great enemy of goods in storage. 
Efforts are unceasingly made in all commercial 
transactions to keep costs at the lowest point, but time 
is adding to these costs every day and twenty-four 
hours a day for every article in the storeroom. Time 
is therefore one of the great storage problems. This 
is evidenced by the lower cost of goods which pass 
direct from the producer to the consumer without 
being subjected to any storage process. 

There is but one way time can render a service 
of a favorable nature to goods in storage, and that is 
through a change in price which would increase the 
intrinsic value, but considerations of this character 
do not alter the influence which time has on the stor- 
age function. 

Any active industrial establishment or supply house 
must maintain its stock of raw material and goods 
at a certain point which will insure a sufficiency to 
meet the demands of the business. Knowing the 
importance of this, knowing the imperative necessity 
of maintaining a supply, the general storekeeper 
could play safe and keep his stock at a point higher 
than absolutely necessary. No good storekeeper, how- 



24 STORING 

ever, would do this; he would carefully weigh the 
economic factors, which are continually adding to the 
cost, and the physical factors, which may be lowering 
the value of the goods under his charge. Having 
by scientific calculations determined the maximum 
amount to carry in stock, anything in excess of this 
entails expense and added cost, the burdens of which 
must be spread and distributed over all other goods 
in the stores. 

Whenever a purchase is contemplated in excess of 
known storage requirements, the considerations men- 
tioned compel close attention because they represent 
the storekeeper's bill of costs, and these costs must 
be set against the lower purchase or against the ap- 
preciation in price it is hoped to gain. 

Psychology in Storing 

A full warehouse and an abundance of goods in- 
duces extra efforts on the part of salesmen. For its 
psychological effect this is worth something. With 
a depleted stock the activities of salesmen are liable 
to slacken. The worker in a factory will also slacken 
his efforts if he sees very small quantities of raw mate- 
rial in front of him. This is a well-established fact, 
although the worker may be unconscious of it and no 
doubt many would deny it. 

A record kept by an engineer in charge of large 
building operations showed a decrease of 30 per cent 
in the number of bricks laid per day when the supply 
had diminished to small proportions. With an abun- 
dance of material and with all supplies coming in freely 
the percentage immediately rose rapidly, 
i , The income tax and other taxes real and threatened 



ECONOMIC QUESTIONS — Continued 25 

have been known to affect the storing of materials 
and supplies. Some concerns have permitted the 
investment of part of their profits in raw materials 
where they may escape part of the taxation which 
would be levied if these profits appeared in the profit 
and loss or surplus account. There can, however, 
be only isolated instances where such a policy is ad- 
visable. To evade successfully a real or threatened 
tax the storage policy would be affected for an indefi- 
nite period, and when all the risks of such a course 
are taken into account it cannot be recommended. 

Obsolete Materials 

Crude raw material practically never becomes en- 
tirely obsolete. A manufacturing plant may dis- 
continue the use of a certain raw material, but that 
renders it obsolete only so far as that particular es- 
tablishment is concerned. It may still be in demand 
by many other concerns. Just as soon as any crude 
raw material goes through a manufacturing process 
the danger of its becoming obsolete increases. As 
some finished products go through many such proc- 
esses, it follows that greater care must be exercised 
in such cases. To illustrate this, suppose a manu- 
facturer is using brass sheets and suddenly decides 
to substitute aluminum sheets, the brass sheets could 
scarcely be considered obsolete if they were of standard 
gauge and size. If, however, the brass had been 
subjected to an additional manufacturing process 
and pressed or spun into special shapes, it might 
become entirely obsolete. 

Obsolete material is dead material. It is worse 
than dead, because storage costs in connection with 



26 STORING 

it are a live factor and are continually mounting 
upwards. It is imperative, therefore, that all obso- 
lete material be quickly disposed of. It is better, 
however, never to let obsolete material accumulate. 
If an infallible system could be devised for fixing 
maximum and minimum limits, it would obviate 
any danger of having in the stores surplus or obsolete 
material, but this is an impossibility. There is at 
some time in every storeroom obsolete material of 
some kind, and to prevent this a close study and 
constant watch must be kept of the maximum and 
minimum limits set for governing the quantity of 
each item in the storeroom. 

What do "Maximum" and "Minimum" Mean 

These terms in relation to goods in storage are 
important. They are, in fact, the most important 
features in storage problems. The correct determi- 
nation of maximum and minimum quantities to be 
carried in stock is a science, and the storekeeper 
who can come nearest to accuracy in respect to the 
two factors will have attained an economic advan- 
tage of great value. 

The needs of every business require a certain amount 
of raw materials, articles, goods, and supplies. For 
successful operation there must be sufficiency and 
there must not be lack. Every dollar's worth of 
goods carried in stock beyond the sufficiency point 
creates an expense beyond the needs of the business 
and to that extent decreases the profits. Insufficiency 
of raw materials and supplies endangers the smooth 
working of the whole establishment. A manufac- 
turing plant closed down or compelled to temporarily 



ECONOMIC QUESTIONS — Continued 27 

suspend the operations of its production department 
sustains severe losses, and a supply house unable to 
furnish from stock articles which it is supposed to 
carry suffers losses both tangible and intangible. 

All of the preceding discussion has served to empha- 
size the importance of fixing accurate maximum and 
minimum limits and the question naturally arises as 
to the manner in which this can be done. There are 
a great many calculations to be made and there are 
many features and elements which influence the set- 
ting of these limits, and as these vary to some extent 
with every business, the final decision is individual, 
but the fundamental principles on which these de- 
cisions are based is the same in every case. The 
main features to be considered are as follows: 

1. The needs of the business. 

2. The minimum quantity which can be kept in 

the storeroom without endangering the sus- 
pension of factory operations, or in the case 
of a jobbing house the normal requirements 
of customers. 

3. The available storage space. 

4. The length of time required to obtain the material. 

5. The quantity which can be purchased most 

economically. 

6. The financial position of a concern may have 

some influence in certain cases. 

For every item in every storeroom there is an exact 
quantity which is a safe minimum. Every time this 
is exceeded, rent, interest, insurance, and every other 
economic factor is working against the storeroom. 
If it were possible immediately to replace the quantity 



28 STORING 

taken from the storeroom with a fresh supply, an 
ideal condition would exist, and the only factor to be 
considered would be the minimum quantity one should 
carry. But this is an impossible condition and to 
provide a margin of safety a maximum quantity must 
be fixed. 

Fixing the Minimum Limit 

Perhaps the establishment of a minimum is not so 
important for a supply house as it is for a manufac- 
turing plant, and perhaps the rules governing the 
minimum are not so rigid. The quantities sold in 
the past can be accurately determined and forecasts 
of sales for given periods should give close estimates 
of future demands. From these calculations a mini- 
mum can be established. 

In all manufacturing industries there is a constantly 
increasing demand for economy in operation and 
reduction of costs. The fact is too often overlooked 
that the cost of a manufactured article does not 
begin when the workman starts operations, but the 
initial item of cost is the price paid for raw material. 
From that point the cost piles up in a succession of 
accretions which follow each other in regular ro- 
tation. Storage costs must take their proper place 
and be absorbed into the cost of the manufactured 
article. It is important, therefore, to keep these costs 
at the lowest possible point, and this can best be done 
by maintaining a minimum amount of stock in the 
storeroom. The production manager has to consider 
the output of his factory, whether this output is uni- 
form throughout the year and whether any manu- 
facturing changes are contemplated, which are likely 



ECONOMIC QUESTIONS — Continued 29 

to make any change in the rate of output or change 
in the character of the material. Having determined 
these points in reference to all articles he is making, 
he can then compile a schedule of his raw material 
requirements. Each item in this schedule must be 
reviewed at periodic intervals. Failure to do this is 
frequently the cause of shortages or the accumulation 
of obsolete material. 

The storekeeper being furnished with these sched- 
ules, it then becomes his duty to have always on 
hand the raw materials to supply the demands of the 
factory. For example, the production manager may 
specify his requirements of a certain material at 400 
pounds per week. It then becomes the storekeeper's 
duty to determine the minimum amount he can keep 
in the stores to satisfy this demand. 

For the economic reasons already given every 
calculation of the storekeeper must keep in view 
the maintenance of his stock at the lowest level con- 
sistent with safety. For every item in a storeroom 
there is an exact quantity which is a safe minimum. 
Every time this is exceeded the storage costs are 
working unduly against the manufacturing costs. 
Every time the quantity is lower than the exact mini- 
mum the danger is imminent of a factory shut down, 
with all the losses that entails. 

Fixing the Maximum Limit 

The maximum quantity must be flexible, to meet 
changing conditions. One of the most difficult situ- 
ations to deal with is a growing scarcity of some 
commodity with the attendant uncertainty regarding 
time of delivery. There have been many instances 



30 STORING 

where a commodity could be procured with certainty 
in two weeks. A growing scarcity or congestion on 
the transportation lines extended this time to one 
month, and later to two, four, or even six months. 
And in such cases deliveries are very uncertain at 
best. A three months' promise of delivery may be 
a four months' performance. Such conditions can 
only be safely taken care of by liberally increasing 
the maximum limits to provide for all contingencies. 

Flexibility in fixing the maximum quantity is also 
permissible in those cases where it is found more 
economical to buy in larger quantities. For example, 
a buyer may find that he can purchase 1000 units at 
a much lower price than 500, but he may be restricted 
to 500 if he is to keep within the maximum. It then 
becomes a question of balancing the advantage in 
price against the storage costs. If the decision is in 
favor of buying at the lower price the maximum must 
be increased. It is not always just a question of 
price only; sometimes it may be advantages in trans- 
portation and in payment of delivery charges which 
influence the decision. 

Two maximum limits are used in the operation of 
some stores. The lower one represents the maximum 
amount of material which must be in the storeroom 
at any time, while the higher one represents the maxi- 
mum amount requisitioned, but not delivered into 
storeroom. In these cases the lower limit is inflex- 
ible, but the higher limit can be made as flexible as 
necessary to meet delivery conditions. By way of 
example, we will assume the needs of a business require 
a stock of 50 tons of #16 gauge steel sheets 36" x 96" 
as a minimum, and owing to space conditions the 



ECONOMIC QUESTIONS — Continued 31 

stock of this material must never exceed 75 tons. 
Here we have two inflexible limits, and it might be 
possible in normal times for the storekeeper to req- 
uisition and the purchasing agent to buy and pro- 
cure delivery without breaking through the barriers 
set in either direction. But it is not always possible 
to do this, and a flexible maximum must be arranged. 

The illustration given is a very simple one. In 
actual practice much more complicated problems 
arise even in normal times. Continuing the discus- 
sion of the example given, the flexible maximum must 
be fixed to meet the market conditions. Assuming 
that the difference between the limits, which in this 
case is 25 tons, represents one month's consumption, 
then the buyer always has this length of time to 
replenish the stock, but it may become impossible 
to procure deliveries regularly enough to maintain 
this, or the buyer may find he can purchase 200 tons 
at much more favorable prices. Thus it becomes 
necessary to determine a flexible or buyer's maximum. 
In such cases we have first the minimum limit set as 
the least amount which must be hi the storeroom at 
any time. Next we have the limit set as the maxi- 
mum amount to be in the storeroom, and thirdly we 
have the maximum amount which may be purchased. 
The difference between the second and third limit is 
set to give the purchasing agent freedom of action. 
He can use all the art of his profession within those 
limits. He can buy or not buy, but he must obtain 
delivery as and when storeroom conditions demand. 

The storekeeper's calculations must be accurately 
made on the following points. He must figure the 
exact time required to receive, inspect, and store 



32 STORING 

each item, so that he may be able to specify on his 
requisition to the purchasing agent the exact date 
on which material must reach the establishment. 

The fixing of minimum and maximum limits has 
been called scientific guessing, but economic reasons 
demand as much science and as little guessing as 
possible. Very close figures can be prepared for any 
storeroom. It has been shown that important factors 
control the establishment of a minimum and the 
flexibility essential in establishing the maximum is 
largely caused by the freedom of action necessary 
in buying. 

Influence of Purchasing Problems on the Storeroom 

Many purchasing problems are closely related to 
storing problems. In many cases they cannot be 
dissociated. Due consideration must be given by the 
party exercising one function to the problems of the 
other. The purchasing agent must keep the store- 
keeper advised of delivery conditions. The store- 
keeper has, therefore, on one hand a schedule of 
quantity requirements from the production manager 
and a shedule of time requirements from the pur- 
chasing agent. 

Some items may be freely obtained at a few days' 
notice; others may take weeks, and others months. 
In all these instances changes are liable to occur, but 
the purchasing agent should sense the changes from 
market indications and give due notice to the store- 
keeper to enable him to prepare his requisitions a 
sufficient length of time ahead of actual needs to 
permit the purchasing function proper scope and to 
insure delivery at the specified date. 



ECONOMIC QUESTIONS — Continued 33 

Theoretically these may look like comparatively 
easy problems, the solution of which should offer 
no difficulties, but in practice they are not so simple. 
Many of the calculations made do not materialize 
in the manner estimated. It is necessary, therefore, 
for the purchasing agent to consider the variations 
and how to overcome them. Assuming that he has 
entered into a contract for a staple material to be 
supplied in quantities of uniform amounts at regular 
intervals to conform to the storekeeper's minimum, 
still, he may suddenly find the regular supply stopped. 
Strikes, breakdowns, embargoes have played havoc 
with deliveries in recent strenuous times. 

Such contingencies must be provided for and auxil- 
iary sources of supply located and kept in view, so 
that the deficiency can be made good. If this shortage 
has to be supplied by purchases from local warehouses 
at a higher price than for mill shipments called for in 
the contract, then it is a question as to whether it is 
a more economical proposition to pay the higher price 
or raise the storekeeper's maximum limits. If goods 
are bought from warehouse and afterwards stored by 
the buyer, he is paying storage costs twice, that is, 
both the seller's and his own. Recourse to increasing 
the maximum adds to storage costs, but enables a 
larger stock to be carried to tide over temporary 
shortages. 

Production Problems and the Storeroom 

Some mention of these is necessary to emphasize 
their influence on the storeroom. An example has 
already been cited of production requirements, but 
that example contemplated a uniform demand on the 



34 STORING 

storeroom for a staple material. When manufacturing 
one article or machine, such as a typewriter, it is com- 
paratively easy for the production manager to specify 
his needs both in respect to quantities and time, 
because he should know accurately his rate of pro- 
duction; but it is much more difficult and compli- 
cated when the output of a factory consists of many 
different types of machines, some of which may be 
called for and constructed at irregular intervals. 

The production manager would naturally wish to 
be in a position to make promptly any of the various 
machines sold by his establishment. There are, how- 
ever, many instances in which certain large machines 
may be built several times within a few weeks, and 
there may be an interval of some months when but 
very few are constructed. This condition of irregu- 
larity is difficult to meet as far as providing the raw 
material is concerned. The production manager must 
base his estimates very largely on information from 
the sales department. He has got to look far enough 
ahead but at the same time if he should specify re- 
quirements too far in advance and very few sales were 
effected in that period, the storeroom might get loaded 
up with a vast amount of slow-moving raw material. 

The storekeeper can be of great assistance in such 
matters. He can give the production manager ac- 
curate figures as to the amount of space available 
for such material and he can also give him exact 
figures of the storage costs for that material per day, 
week or month. This is valuable information for 
a production manager, and of considerable help in 
the circumstances quoted. 



CHAPTER IV 

Specifications, Definitions, and 
Stand aedization 

General Remarks 

FOR every article in every storeroom there is a 
correct description. This description may con- 
sist of only two or three words and figures, or it may 
require a detailed technical specification to identify 
properly the material so that no misconception can 
possibly exist as to what is actually meant. 

Failure to describe properly articles or to have 
standard methods of defining them leads to endless 
confusion in some storerooms, and entails much extra 
work and expense in referring requisitions back and 
forth to clear up moot points. 

The matter has been engaging the serious attention 
of many large manufacturers, and illustrations will 
be given of the efforts made to solve the problem. 
Whatever is undertaken in this direction must be 
comprehensive; that is, it must apply equally to the 
storeroom, production department, purchasing de- 
partment, and to the engineering or other interested 
departments. Every employee of a concern having 
anything to do with the material, articles, and supplies 
purchased and used should be compelled to conform 
to the standard methods of describing them. 



36 STORING 

The advantages of standardization are not confined 
to the particular establishment putting it into force, 
but it has a much wider and broader influence, for it 
has a favorable effect on the economics of business in 
general. The discussion on this point will be limited, 
because it is somewhat outside of storeroom economics, 
but it is desired to point out what far-reaching in- 
fluence loose storeroom methods may have. 

If a storekeeper draws up a requisition for materials 
or supplies and uses incorrect or inadequate descrip- 
tions, it is more than probable that these will be re- 
peated by the purchasing agent in sending out his 
inquiries and orders. The recipients of these will 
come back with requests for information of a more 
exact and definite nature. 

If reports were obtained from business houses an 
overwhelming majority would testify that their ex- 
penses are largely increased because of the conditions 
referred to. A vast amount of the time of salesmen 
and clerks is taken up investigating the inquiries and 
orders they receive in an endeavor to discover exactly 
what is required. This means many unnecessary tele- 
phone calls, much correspondence which could be 
avoided, and a great deal of salesmen's time wasted. 
The additional expense caused by these factors must 
be added to the cost of the goods and covered by the 
selling price; therefore the buyer must eventually 
pay them. The storekeeper has a large part to per- 
form in reducing these expenses, and in accomplish- 
ing this he will reduce the cost of the goods under his 
charge. 

To. specify means to describe accurately, to be 
definite, to be explicit. With many small articles in 



SPECIFICATIONS AND STANDARDIZATION 37 

common use this accuracy can be expressed in the 
commercial terms in general use in the trade, but there 
are certain materials which need greater particular- 
ization and must be described in highly technical 
terms and probably some tests must be specified 
which the material is to undergo. This distinction 
segregates roughly all articles and materials into 
two classes, and they will therefore be discussed 
separately. 

Technical Specifications 

Under this heading are those descriptions of mate- 
rial which the engineering staff should draw up and 
which become the standard specifications for the raw 
material used in the factory. These specifications 
should be furnished to the storekeeper and purchasing 
agent. It may not be the duty of the storekeeper 
to see that the material under his charge conforms 
to these specifications, but he should have copies and 
inform himself regarding the characteristics of the 
material in his storeroom. These specifications may 
provide for certain physical tests or chemical analyses. 
If these are not carried out before the material reaches 
the storeroom, it may be the storekeeper's duty to 
have them made, and this phase of his work will 
be referred to in a subsequent chapter in discussing 
the operation of a storeroom. 

The specifications themselves should be kept in 
folders properly indexed as indicated in Figure 2. 
In addition to this a numerical list of all specifications 
should be kept to enable any one of them to be found 
quickly, either by number or title. With some ar- 
ticles the engineering staff may furnish blue prints, 



38 STORING 

and these can be kept in a manner similar to the 
specifications. 

Correct Commercial Definitions 

These definitions are those which apply to articles 
in general use and for which there are well-recognized 
trade names and descriptions. Many storerooms carry 



SPECIFICATION NO DATE FOLDER NO. 



NAME OF MATERIAL 



REVISED DATES 



SPECIFICATIONS CONNECTED WITH THIS 



Figuke No. 2. — Index card for specifications. Size 3x5. 

no other goods and every storeroom has some of them. 
Comprising, therefore, a very large proportion of the 
stock in storerooms, it is essential that they be prop- 
erly described and designated. 

The correct definition does not only mean getting 
the right name; it also means specifying the quantity, 
size, and weight correctly. In those establishments 
where standard definitions are not enforced it is a 
common occurrence to see one man name the length 
first and the width next, while another will reverse 
this. Again, one man will give the name of the ar- 



SPECIFICATIONS AND STANDARDIZATION 39 

tide first, followed by quantity, size, or weight, while 
another will give the quantity or weight before nam- 
ing the article. The variations are so many and lead 
to so much confusion in some establishments that 
it has been found imperative to compel the use of 
proper definitions. 

The storeroom is probably more interested in this 
matter than any other department, because it is the 
medium through which the material and articles are 
distributed, and because it has to use the names more 
frequently than other departments. The storeroom 
employees come into physical contact with the goods, 
whereas to the cost department and purchasing depart- 
ment employees the mention of them carries no more 
meaning than just a name. The storeroom usually 
draws more requisitions than any other section of an 
organization, and as already pointed out it is neces- 
sary for these requisitions to be correctly written up. 

There have been a great many attempts to standard- 
ize the materials used in manufacturing plants. Prob- 
ably all factories make some efforts in this direction. 
But very little has been done towards standardizing 
the use of proper definitions. The purpose of enforc- 
ing the use of these is: 

1. To secure uniformity in naming and defining 

all materials, articles, and supplies. 

2. To avoid confusion and misunderstanding. 

3. To familiarize employees with the material used 

in making the product of a factory and with 
the supplies used and consumed. 

4. To reduce the variety of materials. 

5. To reduce the variety of supplies. 



40 STORING 

Illustrations of Definitions 

In figures 3 to 7 are given several illustrations of 
sheets of definitions which have proven very success- 





/rooN0, 





— / 


— e= 








r' 


> 




1 


\ 


J 


1 








SQV/U?£ 









'+-* 


— « 










< 


s 


' 


f 








J 




1 


-. 3 









WASHERS 



DEFINITION! 



The term "Washer" shall be understood as indicating a thin, part or piece with a hole in it The 
part and hole are usually round in form although both or either may be rectangular or some irregular 
shape. 

The term "Washer" shall not be applied to a thin part or piece that does not have a hole in it. 
Such parts shall be known as "Disks" or "Plates" depending upon their shape, and no part shall be 
known as a washer where the thickness is greater than the diameter of the hole or inside 
diameter of the part. Such parts shall be known as Bushings, Collars, etc. which are properly described 
under their several headings. 

Several forms of washers are shown above, also the general method of dimwiainning that should be 
followed on all drawings. 

Washers are used for many purposes, such as taking up space, to insure a better bearing for bolt' 
head or nut, insulation, etc. If made of a yielding material, they may be used to make a tight joint 
between bolt, nut and part it is in contact with.. 

They are made in an endless variety of forms and from, many classes of material. 

In specifying plain round washers, not standard, the dimensions should' be given in the 
following order, viz.. Inside Diameter, Outside Diameter, Thickness and Material. 

In specifying "Narrow Gauge" standard washers, state diameter of bolt used on, material and 
fltate "Narrow Gauge." 

For dimensions of V. S. standard and standard narrow gauge round iron washers, see table. 
"Dimensions of Standard Wrought Iron Washers" #5209 Data Class. 

For list of iron washers giving Part Numbers see #1128 Table Class. 

For dimensions of standard round brass and copper washers, see table "Dimensions of 
Standard Brass and Copper Washers" #5211 Data Class. 

The term "Standard" when applied to brass and copper washers refers only to the Otis 
Elevator Company's Standard as there are no commercial standard brass and copper washers. 

For list of brass and copper washers giving Part Numbers see #1127 #1129 and #1201, Table Class, 

In specifying rectangular washers, the dimensions should be given in the following order, viz.,' 
Diameter of Hole, Thickness, Width and Length. 

SPECIFICATIONS FOR PURCHASE ORDERS AND STOCK LEDGER SHEETS. 

Quantity, Bolt Diameter, Standard Iron Cut Washers. 

Example: 20 lbs. (approximately 500) J 'standard iron cut washers, or 

25 lbs. (approximately 500) | ' standard iron cut washers, "Narrow Gauge." 

Figure No. 3 — Standard definition for washers. 



SPECIFICATIONS AND STANDARDIZATION 41 

ful and of great benefit in securing the objects out- 
lined. In all establishments of sufficient magnitude 



COi/Afr£TSt/A//f. 



-£>-- 



=T 



Bi/rro/v- 



FLAT. 



IRON RIVETS 
DEFINITION: 

A rivet is a pin for holding two or more plates or pieces together. A head is usually formed on one' 
end when the rivet is made; the other end is upset, or headed, after rivet is put in place, and draws 
the riveted members close together. 

Iron rivets are made with many different style heads. Requirements are to be confined to 
countersunk and button heads wherever possible. 

For length of rivet before forming head, see table "Rivet Lengths for Forming' Round and Counter- 
' sunk Heads" #5210 Data Class. For list of iron rivets giving Part Numbers, see #1178 Table Class. 

The included angle of head of countersunk head rivet is 70 degrees. 

The material used in the manufacture of "iron rivets" is Extra Soft Steel and must have a tensile 
strength of not less than 50000 pounds per square inch. 

SPECIFICATIONS FOR PURCHASE ORDERS AND STOCK LEDGER SHEETS. 

f Countersunk 
Pounds (Approximate number of rivets) Diam. x Length \ Button [ Head Iron Rivets. 

{ Flat J 

Example: 200 lbs. (approximately 2000) f ' x 2|* button head iron rivets. 

Note: — For number of iron rivets in 100 lbs. see table on page 12. 



SPECIFICATIONS FOR STOCK OR SHOP LISTS AND REQUISITIONS. 

f Countersunk 
Quantity, Diam. x Length \ Button [ Head Iron Rivets. 

I Flat J 

Example ; 25 — f ' x 2\ " countersunk head iron rivets. 



SPECIFICATIONS FOR DRAWINGS AND ENGINEERING PART LISTS. 

f Countersunk \ 
Quantity, Diam. x Length \ Button \ Head Iron Rivets, Part Number. 

[Flat J 

Example: 25 — \" x 2J" countersunk head iron rivets, Part No. 7895. 

Figure No. 4 — Standard definition for rivets. 

some similar scheme should be in force. There are 
certain points in connection with the illustration which 



42 



STORING 



need some explanation, although their general import 
can be readily comprehended by a careful perusal. 



m-0- 



*-e- 

JV//9JT &9i/Jd£ 




BRUSHES 



DEFINITION: 



The term "Brush" shall be understood as indicating an electrical conductor bearing against a \ 
surface for the purpose of maintaining a continuous electrical sliding contact between the same. There 
must be relative motion between the brush and surface such that the said parts slide over each other 
in normal operation, but this contact must be maintained when such motion ceases. 

They are made in an endless variety of forms, and from a variety of materials. 

The material will be generally understood as being carbon or graphite, or a combination of both, 
either with or without a given percentage of metal, depending upon the specifications. 

Several forms of brushes are shown above, also the method of- dimensioning that should be followed 
on all drawings. 

When specifying brushes, they must always be specified per O. E. Grade numbers as shown on 
J433-B Data Class and #973-B Specifications. 

When ordering brushes, reference must always be made to a drawing or sketch. 

SPECIFICATIONS FOR PURCHASE ORDERS AND STOCK LEDGER SHEETS. 

Be guided by drawings and specifications when making Purchase Orders and Stock Ledger Shf P ts , 
using in addition to description, the Part Number. 

SPECIFICATIONS FOR STOCK OR SHOP LISTS AND REQUISITIONS. 

Be guided by drawings and specifications when making Stock or Shop Lists and Requisitions, using 
in addition to description, the Part Number, 

SPECIFICATIONS FOR DRAWINGS AND ENGINEERING PART LISTS. 

Quantity, Name of Part, Class, O. E. Grade Number. Part Number, Drawing Number:' 

Exampler 25 motor brushes complete, class #10, O. E grade §7, Part No. 12340, No. .5047 



E. D. 



Figure No. 5 — Method of defining carbon brushes. 



Figures 3, 4, and 5 illustrate the method of defining 
well-known small articles. They indicate how these 
should be specified on the storerooms perpetual in- 
ventory or ledger sheets, which should in all cases 



SPECIFICATIONS AND STANDARDIZATION 43 



correspond with the specification on the storeroom 
requisitions and on the purchasing agent's orders. 
It will be noticed that when specified on drawings 



%- 



pp 



TYPE'R' 




TYPE'S 



TYPEV 



STUDS— STEEL AND IRON 



Part 
















Number 


D 


L 


Li 


Lt 


Type 


Material 


Remarks 


12162 


»' 


1ft' 


i* 


_ 


A 


C. R.S. 


0C-93SW 


80806 


ft* 


If 


ft* 


ft' 


A 


C.R.S. 


"1696 E. D. 


85237 


ft' 


13* 


Full length 


C 


CR.S. 


083 MA. (#10-32 6ie) 


89760 


ft' 


4ft' 


1" 


i' 


C 


C.R.S. 


#94 MA. (#10-32 Die) 


89467 


ft' 


1ft* 


I* 


i* 


B 


C. R.& 


#194 SW. (#12-24 Die) 


801867 


.242' 


U' 


A' 


1* 


A 


W.I. 


#559 E. D. (#14-20 Die) 


801042 


.242* 


U' 


ft' 


1' 


A 


C.RS. 


#2095-AE. D. (#14-20 Die) 


801037 


.242* 


2}' 


3* 


I' 


C 


C. R. S. 


Part List 1485. (#14-20 Die) 


80807 


.242' 


2J» 


Full length 


C 


CR.S. 


#2427-BE. D. (#14-20 Die). Weight rod 


801038 


.242' 


3* 


J' 


i* 


c 


C. R. S. 


Part List 1485. (#1.4-20 Die) 


801416 


.242' 


3H' 


3' 


3* 


A 


C. R. S. 


#436 SW. (#14-20 Die) 


800127 


.242* 


4' 


1* 


— 


C 


C. R. S. 


Part List A-54-CR. (#14-20 Die) 


80808 


.242' 


4' 


Full length 


A 


C. R.S. 


#1253-B E. D. (#14-20 Die) 


800369 


.242' 


5§* 


i* 


i* 


A 


C.RS. 


#97 MA. (#14-20 Die) 


87125 


r 


i' 


r 


— 


A 


C. R. S. 


#2873-B E. D. 


802290 


1* 


If 


i* 


— 


A 


C. R. S. 


#2385-BE. D. (#14-20 Die) 


286 


3' 


2' 


j* 


— 


B 


C. R. S. 


#B-126 CR Special, one end slotted 


80809 


3' 


2' 


»* 


H* 


A 


C. R. S. 


#2314 E. D. Special, see drawing 


80810 


i* 


2i* 


3* 


i' 


C 


C. R. S. 


#3253 E. D. 


84548 


i' 


2}' 


V 


V 


C 


C. R. S 


#B-225N. Special, copper plated 


801322 


i* 


3j* 


V 


3* 


— 


C. R. S. 


#418 SW. (#14-20 Die) 


80811 


3' 


4' 


ft' 


I" 


B 


C. R.S. 


#1619 E.-D. 


801040 


ft' 


13' 


ft' 


3' 


A 


C. R. S. 


#2135-AE. D. (#16-20 Die) 


802291 


ft' 


2' 


1ft* 


— 


C 


M.S. 


#106 SW 


802292 


ft' 


2' 


1ft' 


— 


C 


M.S. 


#106 SW. Special, sherardized 


80812 


ft' 


2}* 


8' 


1" 


C 


C.R.S. 


#3129 E. D. 


80813 


ft' 


23* 


1* 


i' 


A 


C. R.S. 


#3128 E. D. Obsolete, use #89437 


89437 


ft' 


2J' 


\' 


i* 


C 


C. R.S. 


#93 MA 


89603 


ft* 


23' 


V 


3* 


C 


C. RS. 


Part List A-65 SW. (#18-18 Die) 


80814 


ft' 


3' 


Full length 


A 


C. R.S. 


#3827 E. D. 


89438 


ft' 


3i* 


J* 


r 


C 


C. R. S. 


#93 MA 


80815 


ft' 


5' 


ft' 


2' 


C 


C. R. S. 


#3399 E. D. (#18-18 Die) 


801790 


r 


H* 


ft' 


— 


A 


C. R. S. 


#4526 E. D. 


801704 


r 


li* 


r 


— 


A 


C.RS. 


#4561 E. D. 


801705 


r 


11* 


r 


— 


C 


C. R.S. 


#10737 Sketch 


801839 


r 


W 


ft* 


— 


A 


W.I. 


#3523-A E. D. Special, one end drilled for cotter pin 


84849 


r 


2* 


r 


— 


A 


C. R. S. 


#4030 E. D. Special, one end drilled 


801732 


i* 


2ft' 


i' 


1' 


C 


C. R. & 


#74 SW 


801437 


3* 


2J* 


3* 


1' 


C 


M.S. 


Part List 1962. 


80817 


»' 


2J* 


IA' 


IA' 


c 


Forged Steel 


#109 SW Special, sherardized, one end drilled for cotter pin 


12039 


3* 


2}' 


li* 


U* 


A 


C. R.S. 


#B-5CR 


80816 


I' 


2j* 


1ft* 


lft' 


C 


Forged Steel 


#109 SW Special, one end drilled for cotter pin 


18977 


3' 


2ft* 


V 


— 


A 


C.R.S. 


#593-A E. D. Special, one end drilled for cotter pin. M.O.S. 


80818 


1' 


21* 


FuU 


length 


C 


C.R.S. 


#4382-B E. D. 


80819 


r 


2}' 


i' 


r 


c 


m. a 


#3326-A E. D. 


18978 


r 


25* 


1* 


— 


A 


CRS. 


#1725-A E. D. Special, one end drilled for cotter pin. M.O.S. 


80820 


3* 


23' 


i' 


ift' 


C 


C.H.S. 


#109 Duplex motor 


800909 


3' 


23' 


1* 


— 


B 


CR.S. 


#3596 E. D. 


87231 


Y 


3J* 


1' 


ift' 


C 


C. R.S. 


Part List A-87 SW 


80821 


V 


33* 


J' 


i* 


c 


CRS. 


#3326-B E. D. 


89607 


V 


31* 


H* 


ii* 


c 


CR.S. 


Part List 108 SW 


80822 


V 


3J* 


1* 


i* 


c 


C. R.S. 


#3119 E. D. 


STitt 


|* 


3J* 


1ft* 


ift.' 


Q 


C.R.S, 


Part List 8-66 SW 



Figure No. 6 — Method of tabulating part numbers. 



44 



STORING 

DEFINITION OF PARTS 



above ifofiniKnn that is less than 12' long shall be known as a 
"Connector." In the case of large cables the smaller insulated 
cables may be twisted together forming one large cable and then 
be further insulated by an additional wrapping. 
The term cable should not be applied to hoisting ropes, governor 
ropes, etc, these will be denned under their proper headings. 

Specification' should state: Quantity, Size, Name of Part, 
Material, Part Number. 

Example: 1— #261-32 cable. Copper, Part No. 8798. 
1— #520-36 cable. Copper, Part No. 8897. 

CAGE— A skeleton frame to limit the motion of a loose piece or 
loose pieces, as ball cages, valve cage, etc 
Apply a prefix to the term indicating function. 

Specification should state: Quantity, Name of Part, Material, 
Part Number. 

Example: 4— thrust bearing ball cages. Brass, Part No. 7807. 
1—5}' valve cage, Bronze, Part No. 2073. 

CALK— This term will be understood as indicating an operation to. 
•tighten a joint formed by overlapping metal plates, or similar 
parts, by driving the edge of one plate hard down on or into 
the surface of the other with a tool called a "Calking Iron." 

CAM— A rotating or sliding piece of any precise shape, or a pro- 
jection of definite shape, as on a wheel, either for imparting de- 
sired particular movement to a roller moving against its edge, 
to a pin free to move in a groove on its face, etc., or for receiving 
motion from such a roller, pin, etc 
Apply a prefix to the term indicating location. 

Specification should state: Quantity, Name of Part, Material, 
Part Number. 

Example: 3— limit switch cams, C. I., Part No. 3724. 
1— rheostat cam, C. I., Part No. 8737. 
4— switch arm cams, Brass, Part No. 3235. 

CAP— This term will be understood as indicating the detachable 
portion of a shaft bearing or a box, when used as a receptacle 
for a stationary pin, shaft, etc., either directly or through an 
intermediate lining. 
Apply a prefix to the term indicating function. 

Specification should state: Quantity, Name of Part, Material, 
Part Number. 

Example; 1— drum shaft bearing, cap, C. I., Part No. 8888. 
1— back gear stand cap, C. I., Part No. 9979. 
2— vibrator shaft box caps, C. I., Part No. 3797. 
2— brake frame caps, C. I., Part No. 2155. 

CAPSTAN — A vertical cleated drum or cylinder revolving on an up- 
right spindle, with pawls at the foot of the drum, and surmounted 
by a drumhead with sockets for bars or levers. It is much used 
for moving or raising heavy weights, or exerting great power by 
traction upon a rope or cable passing around the drum. It may 
be operated by steam or electric power, or by means of capstan 
bars pushed by hand. 

A capstan is distinguished from a windlass in that a windlass 
turns on a horizontal axis. 

CAR— This term will be understood as indicating that enclosed 
part of an elevator apparatus in which the passengers or freight 

If the part is not enclosed it will be termed a "Platform." 

CARRIER— A device that carries or drives, as the traveling part of 
a mechanism or system directly supporting something conveyed 
from one place to another. This term must not be applied to 
a single part, but is to be used to indicate a complete apparatus, 
as a releasing carrier, etc 
Apply a prefix to the term. indicating function. 

Specification should state: Quantity, Name of Part, Part Number. 

Example: 3—reIeasing carriers, Part No. 673» 



CASE— A part used as an enclosure or protectee. 
parts. See also "Housing." 
Apply a prefix to the term, indicating locatio* 

Specification should state: Quantity, Name 
Part Number. 

Example: 1 — worm gear case, C. *., Part Nc 
X — brake magnet case, C. I., Part 
1 — stop motion case, C. I., Part Ii 

CATCH — A part used to check, retard, stop or he- 
parts either permanently or for a'predetermin/ 
The term catch should be used with discre/ 
wherever possible 
Apply a prefix to the term indicating function. 

Specification should state: Quantity, Name 
Part Number. 



Example: 



1 — contact arm catch. Brass, Par 
1 — weight lever catch, C. I., Pan 
1 — magnet armature catch, C. I., 



CENTER— This term has been erroneously used 
cate a detachable hub for wheels, gears, sheav 
The use of this term must be avoided in the f 
the term "Hub." 



CHAIN— This term will be understood as ii 
links or rings, connected or fitted into on 
various purposes, as a support, restrain, or 
of mechanical power, etc. Chains are also > 
weight." Chains are made in many forms ar 
Apply a prefix to the term, indicating type o* 

Specification should state: Quantity, Size 
Material, Part Number. 

Example: 20 ft. #10 Diamond sprocket chain, S 
30 ft. i * bicycle chain, Steel, Part 
40 ft. i ' open link chain, W. I., Pa) 
20 ft. §* sash chain. Brass, Part N 



CHAIR — ATslock or plate used for supporting a 
time securing it to another part. 
Avoid the use of this term, using instead 
Catch, Clamp, etc, depending upon conditii 
of Bracket, Catch, Clamp, Etc 

CHANNEL— This term will be understood a 
rolled iron, steel, brass, etc, having a gutter i 

Specification should state: Quantity, Sij 
Material, Part Number, ' 

Example: 3 — pes. 8' x lli# channel, Ste(, 
5 — pes. 6' x 8# channel. Steel, P 

Or it may be written: — 

3— pes. 8' x 11J# Is Steel, Part 1* 
5— pes. 6' x 8# Is Steel, Part No 

CHECK NUT — A nut screwed down hard on & 
from slacking back. This part is sometimes 
a "Jam Nut. For further information concei 
and method of specifying, see #5036 Data CI 
For dimensions of standard check nuts see #51 
For list of standard -check nuts giving Part 
and #1194 Table Class. 

CHEST— This term •will be understood as indica 
tacle or box, usually for holding gas, steam, I 
Steam chest for an engine, or water chest for fa- 
Apply a prefix to the term indicating functia 

Specification should state: Quantity, Name 
Part Number. 

Example: 1—5* x 5' water chest, C. I., Parti 
X — 8* x 10* engine steam chesty C 



Figure No. 7 — Method of defining terms used in connection with parts 
of apparatus. This information is valuable to non-technical men. 



SPECIFICATIONS AND STANDARDIZATION 45 

and engineering part lists the "Part number" should 
be given. This is a detail which it is not necessary 
to specify on a purchase order because it would have 
no meaning to the recipient of the order. It is infor- 
mation solely for the members of the organization 
and enables them to identify the article with the 
part number. 

Figure 6 shows in what manner the part numbers 
are tabulated. The purpose of this table is clear and 
needs no explanation. 

Figure 7 indicates the use of the various parts. 
This sheet gives very valuable and very interesting 
information. It enables all employees to acquaint 
themselves with the purpose of the many articles used 
in constructing and assembling the product of a 
factory. In this respect it is a liberal education. 

The sheets illustrated in Figures 3 to 7 should be 
distributed to all members of an organization whose 
duties require them to name or specify any material, 
and should be kept in handy binders for ready 
reference. The purpose which the sheets are intended 
to serve will, however, be defeated if they are not 
used. This is the one defect of this system. They 
are apt to be treated as books of reference for use when 
in doubt, and too often are not referred to at all, 
with the result that many mistakes are made. In 
spite of this they are eminently successful and a rigid 
enforcement of their use would make them completely 
so. 

What the Storeroom can do in Standardizing Definitions 

The discussion in this chapter has been confined to 
schemes and efforts which are general in their nature; 



46 STORING 

that is, they are for use throughout the establishment 
and are not of storeroom origin. But there are many 
organizations which are not of sufficient magnitude 
to adopt such an elaborate scheme and perhaps do 
not care to incur the expense which it entails. Never- 
theless, their need is just as insistent as that of the 
larger concerns. It is in such instances as this that 
the storeroom can render inestimable service. It 
can do it to better effect than any other department, 
because it is the medium through which the articles 
pass and it has both the acquaintance with the physi- 
cal properties of the article by daily contact and the 
acquaintance with its description through the daily 
clerical work of recording and stores bookkeeping. 
Large results can be accomplished by the storeroom 
if the problem is approached in the right manner and 
grappled with in a systematic way. 

It is not contended that the storekeeper should de- 
fine what material should be used in production work. 
That phase of manufacturing must be left to the 
technical staff. It has probably been adopted after 
exhaustive and extensive experiments have determined 
its suitability, and this work cannot be rendered 
nugatory by a non-technical man. What it is sug- 
gested the storekeeper's activities should cover is the 
proper description and ordination of the innumerable 
small articles which form a composite part of the 
product of the factory. 

But in connection with all supplies and small tools 
the storekeeper's activities may take on a wider scope. 
In many establishments it may be wise to let him have 
the deciding voice in selecting such things as waste, 
brooms, brushes, all kinds of packing materials, etc. 



SPECIFICATIONS AND STANDARDIZATION 47 

If he is a man of the right caliber, with common sense 
and discrimination, he can keep the varieties of these 
used around the plant at the minimum. It, too, 
frequently happens that personal likes and dislikes 
are allowed to influence the use of these articles, 
with the result that entirely too many come into use 
when there is no controlling hand. Many instances 
have come to the writer's attention in which store- 
rooms were carrying many styles of brooms and 
several varieties of waste in excess of actual needs. 
The storekeeper has these things lined up alongside 
each other in his racks and bins, and it should be- 
come apparent to him before it does to any one else 
that the number can be reduced. 

Obtaining Proper Definitions and Method of Using Them 

It is not assumed that a storekeeper could from 
memory give the correct definition of every article 
under his charge. In some establishments these may 
run into thousands; but he can obtain them, and it is 
not the stupendous task that the number would 
seem to indicate. Much information can be obtained 
from catalogues, but this source should be used to 
collect general information regarding an article, that 
is, the number of sizes in which it is made, the differ- 
ent styles, etc., rather than to secure the correct 
definition. 

It is necessary to approach the manufacturers and 
get their technical staff to specify correctly many 
new items and quite often some of the old ones. There 
is an extensive movement among manufacturers of 
many products to standardize the specifications of 
their output. When the correct definition has been 



48 STORING 

obtained a permanent record should be made of it 
in the manner indicated in Figure 8. By adopting 
this course the whole range of articles in the store- 
room can be covered within a reasonable time and 
without disturbance of the routine work. If it is 
found necessary, in very large storerooms, a man can 
be designated to standardize definitions and devote 
his whole time to it until completed. 



KSClflJLSCs < k J%s<rtj0 



DEFINITION:. 



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X*c^£-est/ /l^tv&. 






J&cet^rv'. t*r &ic*se*i/ cCtT7^L£^ ^et^f-^e^ ~&-<k^C 



Figure No. 8 — Card for recording standard definitions. Size 4x6 inches. 

If separate cards are not kept on which the defi- 
nitions can be recorded they can be specified on the 
perpetual inventory cards or sheets, as shown in 
Figure 9. Constant visualization of these defini- 
tions in their proper form ultimately compels the 
use of them. There is one great advantage in this 
scheme in that the definition is always in view of the 
person writing up a requisition for additional material 
and renders it almost impossible to use incorrect 
descriptions. The preceding discussion covers some 



SPECIFICATIONS AND STANDARDIZATION 49 





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50 STORING 

of the main features of a storekeeper's activities 
through which he can render signal and valuable 
service. There are inevitably many minor details 
which would suggest themselves to an intelligent and 
resourceful man. The stores department is between 
the buyer and the user, and in this position it can be 
of material assistance in coordinating the activities 
of the purchasing and production departments. In 
manufacturing establishments it is not an easy matter 
to get all foremen to specify correctly each article 
when they make requisitions to draw material from 
the stores. Very considerable improvement could 
be effected over the conditions existing in many plants. 
Even if requisitions come into the stores with incor- 
rect or inadequate definitions, the stores department 
should not repeat these delinquencies in writing up 
the requisitions, which go to the purchasing depart- 
ment. 



CHAPTER V 

Location and Equipment of Storeroom 

Location 

INDIVIDUAL circumstances will largely govern 
the amount of space necessary, and space require- 
ments will frequently determine the location. At 
one time it was considered necessary for supply houses 
handling similar lines of goods to concentrate in close 
proximity to each other and the practice is still very 
largely followed. But this theory is losing adherents, 
because of the improvement in transportation facili- 
ties and to some extent because of the success achieved 
by the large terminal warehouses, which are being 
used as receiving and distributing points for many 
classes of goods. It is apparent that these must show 
economic advantages over warehouses located in a 
congested section of a city. 

Better transportation facilities are also largely re- 
sponsible for the changed conditions in municipal 
storing. This and the better equipment now obtain- 
able have had their influence in effecting the improve- 
ments which have taken place. In some large cities 
it has been found practicable to reduce the number 
of stores fifty per cent. In these cases it has effected 
considerable saving in the amount of help necessary 
to operate the stores, reducing this item of expense 
nearly to the same extent as the reduction in the 
number of storerooms. 



52 STORING 

The problems connected with the location of store- 
rooms in manufacturing plants are multitudinous, 
and the solution of them involves consideration of 
many features which are not met with elsewhere. 
Well-selected locations will save much physical effort 
and be a help in keeping down costs, which is the 
great desideratum in manufacturing operations. 

No set rules can be laid down, because the con- 
ditions prevailing in establishments vary greatly and 
each one needs very close study. It may seem fit 
from the result of these studies to have one central 
storeroom furnishing to each department its supplies 
by means of conveyors or transveyors. In other 
cases it may be decided to have separate storerooms 
in each department, with some form of centralized 
control. The facilities which exist to-day for trans- 
porting goods between departments have modified 
the ideas which at one time prevailed regarding store- 
room locations. These facilities will be discussed 
later on in this chapter. 

Proportion 

In any manufacturing establishment the apportion- 
ment of space for storage purposes is a matter of some 
importance. The ideal condition would be to have no 
vacant storage space and at the same time to have no 
congestion or overcrowding. 

This condition is almost impossible of realization, 
but every effort should be made to get as near as pos- 
sible to it. Vacant storage space is a dead loss, but 
nearly every storeroom has some when stocks are at 
the minimum point. Considerable improvement has 
been effected by the flexibility of the equipment which 



LOCATION, EQUIPMENT OF STOREROOM 53 

is now obtainable. A description of this will be taken 
up later in this chapter. The reverse of excessive 
space is a too limited area. This means congestion 
and is perhaps worse from an economic viewpoint. 
It frequently means handling goods more often than 
should be the case, entailing not only extra expense 
but liability to damage, errors in counting and check- 
ing, loss of time in making deliveries, etc. 




Figure No. 10 
Showing method of lettering and numbering aisles. 

Equipment 

Nothing is more conducive to economical and effi- 
cient storage than proper equipment. This is fixed 
and movable in character and some types of each 
kind will be dealt with in detail. It would be mani- 
festly impossible to cover everything required for stor- 
ing all kinds of material; the discussion, therefore, 
will be confined to such equipment as is needed for a 
general line of supplies and raw material. 

Generally speaking, too little attention is paid to 



54 



STORING 



the proper housing and arrangement of stores. In the 
majority of industrial plants large sums are constantly 
being expended in developing and perfecting machinery 
and tools for obtaining quicker and better results 
in the shop. Some establishments will be prodigal 
in this respect, but a niggardly policy will prevail in 
stores equipment resulting in loosely kept and poorly 
arranged stores. Damage, deterioration, and disorder 
follow, while the untidy appearance causes slackness 
and low efficiency. 




Figure No. 11 

Illustrates the arrangement of various sizes of compartments from the 
same size units. The first assembly is arranged with fronts for bins, while 
the second shows plain shelves fitted with tote boxes. 



Bins and Shelving 

Practically every storeroom needs some kind of 
racks, bins, and shelving. These are just as essential 
as correspondence files in an office. It would not be 
deemed possible to operate a bank without proper 
receptacles for the different forms of money, or to 
run an office without a system for taking care of its 



LOCATION, EQUIPMENT OF STOREROOM 55 



records, so that they are quickly available for refer- 
ence. Without these, banks and offices would be 
working in confusion. Yet, frequently unnoticed, 
many storerooms are working in confusion, because 
of lack of the right equipment. It has been empha- 
sized that everything in storage is wealth, and every 
storekeeper should 
consider his stock 
in the same manner 
as he would if it 
consisted of pen- 
nies, nickels, and 
dimes. 

If the value of 
every foot of stor- 
age space were de- 
termined on the 
lines laid down in 
Chapter Two, the 
great advantage of 
flexible steel equip- 
ment would be ap- 
parent. With this 
it is possible to do 
almost anything in 
the way of extend- 
ing or contracting the receptacles formed by them. 
If, for instance, several sizes of rivets are being carried 
and it is desired to discontinue one size or add one, 
either change can be made without disturbing the 
proper sequence of sizes and usually without much 
disturbance to the existing stock. 

Steel equipment can be had in many forms, and a 




Figure No. 12 
An excellent type of bin extending full height 
of room if necessary, with lower part arranged 
for larger and heavier goods. 



56 



STORING 



description of some of them will be given. The 
reader is referred to the illustrations shown through- 
out this chapter for further details and for the pur- 
poses for which they are used. In some stores it may 
be necessary to use lockers for small and valuable 




Figure No. 13 
Showing assemblies of a lower type arranged so as not to obstruct the light. 

articles and in some instances special construction 
of bins may be required, but as a rule most of the 
material kept in bins or racks can be stored in one of 
three types. These are known as the closed type, 
open type, or rack type of receptacle. 

Any of these types can be secured in the unit system 



LOCATION, EQUIPMENT OF STOREROOM 57 

of construction, which permits of great flexibility. 
That is, the unit can be extended or contracted at 
will, within the limits of the adjustment spaces. These 
are arranged every three inches vertically and ap- 
proximately every six inches horizontally. The par- 
titions or dividers provide for the greatest economy 



Figure No. 14 

Showing wide aisle to permit drawing long articles from bins and also the 
passage of large trucks. 

of available storage space. It is computed that the 
use of these effects a saving in storage space of 30 
per cent over the ordinary type of wooden bins and 
shelving. Further advantages are secured by the 
simplicity of construction, which makes erection so 
easy that any handy man, with only a screw driver, 



58 



STORING 



can assemble and erect them, or make such changes 
as may be desired or caused by variations in stock. 
There are many other advantageous points, and one 
which may be mentioned is the additional protection 
from fire over the wooden construction. Even if 
the building itself is of fire-proof construction and 

is equipped with 
wooden bins and 
shelving, the risk 
is much greater 
than if these were 
steel. 

The Closed Type of 
Bins 

This type is made 
up in the following 
manner. The flat 
steel backs extend 
the full height and 
full length of as- 
semblies. These 
backs act as divid- 
ing walls when it is 
a double-face as- 
sembly. The up- 
rights are attached to the backs at right angles with 
stove bolts. There are flanges on the uprights punched 
with holes to correspond with holes in the backs, so 
all that is necessary is to insert and tighten up the 
bolts. Both the uprights and backs are punched for 
the attachment of shelving. The shelving is then 
connected with the uprights and backs with stove 




Figure No. 15 
An illustration of the flexibility in arranging 
the sizes of bins. These are much larger than 
others shown to take care of castings. 



LOCATION, EQUIPMENT OF STOREROOM 59 




Figure No. 16 
Showing details of construction of closed type of bins. 



60 



STORING 



bolts. This method of construction distributes the load 
on the shelves between the uprights and the back. 

After erection, as described in the last paragraph, 
we have shelving inclosed on three sides and spaced 
practically any distance apart within a range of three 
inches. These shelves can be promptly converted 

into bins by simply 



attaching a bin front 
in connection with 
the front face of the 
shelves. This ar- 
rangement permits 
part of an assembly 
to be used as bins 
while part can re- 
main as shelves. 

It will be observed 
from the description 
given that this form of 
construction provides 
absolute rigidity, as 
the bin fronts and 
shelves are bolted to 
the frames, but at 




Figure No. 17 



These are plain shelves; if the back was 
omitted, the assembly would be what is 
known as "open shelving." Note the 
weights which can be carried. 



the same time does not prevent shelves being con- 
verted into bins, or bins into shelves. Neither does 
it prevent the spacing adjustment of shelves and 
dividers that may be necessary to accommodate the 
receptacles to the changes in bulk of the contents. 

Open Shelving 

The term "open shelving" is used to designate the 
type of construction which has no backs to the shelves, 



LOCATION, EQUIPMENT OF STOREROOM 61 

enabling the helpers to take material from either side 
of the assembly. 

The shelf is formed from one piece of sheet steel 
with edges turned on all four sides. The front face 
of each shelf is attached to the upright with four bolts. 




Figure No. 18 
When fronts are attached to the shelves they are 
converted into bins. This assembly is carrying 
more than 15,000 pounds. The two shelves with- 
out fronts are carrying 200 pounds per square foot. 

This method of fastening provides for any lateral 
thrust, as it acts as a knee brace. Each shelf being 
attached in this way makes the entire assembly abso- 
lutely rigid. The uprights are formed from one piece 
of sheet steel, having the front face punched with 



62 



STORING 



holes, permitting a three-inch range of adjustment. 
Both faces of the shelves are alike, and the system of 
fastening these to the uprights and the design of the 
assembly makes it self-anchoring. 




Figure No 



An excellent type of closed rack which can be used for drill rods and similar 
material of uniform length. 



Reference to the illustrations will demonstrate that 
the open shelving consists simply of shelves and 
uprights, but these shelves can be converted into bins 
in the same manner as the closed type by simply 
attaching the bin fronts. The unit principle is ad- 



LOCATION, EQUIPMENT OF STOREROOM 63 



hered to and these units can be made to bear a proper 
proportion to the class of goods being stored. 
Racks 

Many kinds of material can be stored to better 
advantage in racks, avoiding the use of solid dividers 
or uprights. There is no limit to the depth of the 
racks, and they can be used for babbitt metal, drill 
rods, moldings, lum- 
ber, sheet metal, 
tubes, etc. 

The construction 
of these racks con- 
sists of steel tee 
uprights with shelves 
having specially 
formed edges, which 
are attached to the 
uprights in such a 
manner as to make 
the assembled rack 
self-anchoring 
formation of the 




Figure No. 20 

New Britain Stock Rack. 
Rack for storing bars, rods and tubes. Very 
T'Vip heavy loads can be placed on these racks and 
the material is very accessible. 



edge of the shelves and the manner of their attach- 
ment to the uprights forms a knee brace and provides 
for any lateral thrust. Each shelf has four of these 
knee braces, and this renders the assembly, when com- 
pletely erected, absolutely rigid. 

With all of the types of closed and open shelving 
and racks already described, slotted holes are pro- 
vided for attaching card holders. 

Another type of rack suitable for heavy loading 
is illustrated in Figure 20. This is designed for the 
economical and convenient storing of heavy bars and 



64 



STORING 



rods. The unit idea is carried out in its construction. 
This permits of the rack being easily and completely 
knocked down and reerected in another location, with 
the minimum amount of work. It also enables the 
rack to be expanded or contracted to meet practically 
any requirements. The rack shown in the 
illustrations is arranged so that changes 
in height can be made in multiples of ten 
inches and the posts are spaced 47 inches 
apart. These dimensions can be in- 
creased or decreased almost at will to 
accommodate material from 12 to 30 
feet long. It is well to have an over- 
hang, as it distributes the load uniformly 
and facilitates loading and unloading 
the rack. 

If enough spaces are provided there 
need not be any undue mixing of sizes, 
which eliminates handling in getting at 
the desired size. One big advantage 
gained in using this type of rack is that 
Figure No. 21 the bars can be taken from the front. 
The construe- j n ther styles if long bars are drawn 

tion of this rack 

is similar to that from the ends a very large amount of 

shown in Figure floQr j requ i re d. 

20 but is arranged _ r _ ri 

for placing against It is impossible to overload racks of 
*Zl l L f^l this construction. The hooks and ten- 

c C O II O III .1 / 1 1 1 li, 

space. sion bolts are of steel, which will with- 

stand the combined bending and tensile stresses. 
Cast iron distance pieces sustain the compression due 
to load. The hooks are made with a roll up on the 
end to prevent the load spilling off. The hooks are 
graduated in length, long at the bottom and short at 




LOCATION, EQUIPMENT OF STOREROOM 65 



the top; this effects a saving in space, as only narrow 
runways are necessary. There is the advantage also 
of being able to lift the bars out with a hoist. The 
base being wider than the spread of the longest hooks, 
no condition of unequal loading can 
render these racks unstable. 

This type of rack can be arranged 
for erection against a wall, as shown 
in Figure 21. Where floor space is 
limited, this is particularly valuable. 
It will be noticed that pans can be 
used at the bottom of the racks for 
storing short pieces. 







Utilizing all Available Space 

There are many storerooms where 
it has been found desirable to keep 
the height of the shelving low on 
account of the nature of the ma- 
terial, or because of the construc- 
tion of the building. But there is 
no objection in some instances to 
the shelving being carried up to the 
full height of the room. Larger 
quantities can be stored in a given 
area if this is done, but provision must be made for 
getting at the upper shelves. Many improvements 
have been made in ladders for this purpose, making 
it much easier to utilize spaces hitherto considered 
inaccessible, or so difficult of access that it was not 
considered worth while to attempt to use them. 

Ladders made for operation through the center of 
the aisles are particularly useful. They have a double 



Figure No. 22 

New Britain Revolving 
Rack. 
A revolving type of rack 
for storing small articles. 
These can be made in a 
variety of sizes and with 
a large or small number 
of compartments. 



66 STORING 

overhead track, which eliminates any possibility of 
the ladder tipping when heavy loads are lifted from 
the shelves on either side. The flexibility of the 
connections and the self-adjusting top fixtures have 
several excellent features. They permit the weight 
of the ladder and the load on it to be carried by the 
floor, and not by the ladder connections. They also 
prevent the ladder bending on the track should the 
floor be uneven. Another desirable feature is that 
the ladder can easily be raised clear of obstructions in 
the alleyways and trucks can readily be moved under 
them. 



CHAPTER VI 

Appliances for Use in the Storeroom 

Movable Equipment 

THE preceding chapter covered a few of the prin- 
cipal needs of a storeroom in the way of fixed 
equipment. It is now proposed to call attention to 
some appliances which are essential to the proper 
operation of every storeroom. It would be mani- 
festly impossible to cover every appliance on the 
market, but at the same time no discussion of stores 
problems could be considered complete without refer- 
ence being made to some of them. The main object 
in doing this is to emphasize the necessity of modern 
equipment for the storeroom. 

Accuracy in counting, weighing, and measuring is 
just as essential in a storeroom as accurate book- 
keeping is in an office. Goods should be moved 
with expedition and without lost motion. To secure 
this one must have the right tools and appliances. 
The storeroom requirements in this respect are apt 
to be overlooked in many establishments, particularly 
in some manufacturing plants. 

A vast amount of endeavor is devoted to the re- 
duction of costs in production work. Large amounts 
are expended in the perfection and improvement of 
tools, and much has been done in the study of motions 
to achieve this result. In some of the instances where 
this has been done the efforts have been confined ex- 



68 



STORING 




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crt 


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APPLIANCES FOR USE IN STOREROOM 



69 



elusively, or almost so, to the shop. Now the cost of 
a manufactured product commences with the purchase 
and storing of the raw materials, tools, and supplies 
necessary for such product. To keep the cost at the 
lowest point it is essential that equal attention should 
be paid to storeroom appliances to insure freedom 




Figure No. 24 

Counting machine of the counter type. Will accu- 
rately count pieces of quarter ounce or over. 

and facility in handling the goods. If it is considered 
desirable to get the maximum output from a machine 
tool in the minimum time, then it is equally desirable 
to keep at the lowest point the cost of taking the raw 
material up to the machine and away from it. 

In the common routine of every storeroom counting, 
weighing, and trucking are operations which go on 



70 



STORING 



unceasingly, and some of the appliances for doing 
this work are brought to the reader's notice. 
Counting Machines 

Counting machines give an accurate and quick 
count of any commodity, consisting of similar parts 

or pieces, without 
the use of tabulated 
figures of weights, 
mental calculation, 
or figuring of any 
kind. The total 
count of the con- 
tents of any box, 
barrel, bag, truck, 
or barrow contain- 
ing an unknown 
number of like parts 
or pieces can be de- 
termined accurately 
and almost instantly. 
There is no chance 
for confusion of fig- 
ures, errors in esti- 
mates, or defective 
calculation, as the 
ace uracy of the count 
is governed mechanically. Mental fallibility is elimi- 
nated, and from fifty to ninety per cent of time and 
labor is saved over every other known method of 
device employed for the purpose of counting. 

The method is one of ratio weight, scientifically 
applied in a simple machine of few parts, which any 
ordinary laborer can operate and understand. 




Figure No. 25 

Counting machine of the portable floor type. 
Will accurately count pieces weighing one ounce 
and over. 



APPLIANCES FOR USE IN STOREROOM 



71 



While knowledge of the weight of the material 
handled is at no time a feature in obtaining count, 
yet, whenever it is so desired, weight and count may 
be secured at practically one operation. 

These machines are indispensable when taking 
inventory, and a complete description of the manner 
in which they are operated will be given in the chapter 
on manual and clerical 
work. The counting 
bars on the machine can 
be graduated to meet 
any requirements. For 
example, the counting 
can be done by the 
dozen, gross or hundred. 

Weighing Machines and 
Scales 

If it is considered 
necessary to exercise care 
and judgment in select- 
ing tools for the shop, 
then it is just as essential 
to use equal discrimina- 
tion in selecting the best 
apparatus for weighing storeroom material. The me- 
chanical construction and capacity should be suitable 
for the work they have to do. Scale manufacturers 
have developed their product to a point where they 
can supply the needs of any storeroom, no matter how 
exacting its requirements may be. 

When purchasing new scales and weighing machines 
the storekeeper should carefully investigate the ma- 




Figure No. 26 

Counting machine of the dormant 
type. These can be made for almost 
any capacity. 



72 



STORING 



chines which appear to meet his needs. The me- 
chanical construction and reliability under service 
conditions should be tested. Too little attention 
has been paid to securing proper weighing apparatus 
for storerooms. It is a common practice to make out 
a requisition for a balance scale, platform scale, fixed 

or portable as may 
be desired, and 
then let the pur- 
chasing agent buy 
the cheapest arti- 
cle which will meet 
this crude speci- 
fication. 

It is not always 
the purchasing 
agent who is re- 
sponsible for ob- 
taining suitable 
articles. For 
storeroom use the 
man who has 
charge of the ma- 
terial and is re- 
sponsible for every 
ounce going in or 
out should be in a 
position to determine what is best for his needs and 
have a deciding voice in the selection. The production 
department of a manufacturing plant is also interested 
in the question of accurate weighing and counting. 

Any recording instrument is liable to get out of 
order; it is important, therefore,, that periodical 




Figure No. 27 

Counting machine of portable type for method 

of operation. See Chapter VII. 



APPLIANCES FOR USE IN STOREROOM 73 

inspection and testing of all weighing machines should 
be provided for. This can be arranged with the 
manufacturers and will insure accuracy at all times. 
As an illustration of this the author had reported to 
him three consecutive shipments of copper from a 
large supply house all of which were short in weight. 
It was found on investigation that the supply house 
had not had its scales tested for a long period. They 




Figure No. 28 
Weighing machine of the dormant type. 

discovered, on examination, that some registered over- 
weight and others short weight. 

It is equally essential to have correct weights in 
a factory. This is particularly important when small 
parts are being made. For example, if a storekeeper 
receives a requisition from the shop for 200 pounds 
of brass tubing and his scales are wrong to the extent 
of one per cent, either plus or minus, there will be a 
very radical discrepancy shown at the end of a year 



74 



STORING 



if similar requisitions come in frequently. This will 
affect not only the storeroom, but the cost department 
will be at fault, for the number of finished pieces 




Figure No. 29 

Weighing scale with dial, showing the tabulation of weights on an adding 

machine. 



obtained from the material taken from the stores 
would be greater or less than if the quantity was 
exactly 200 pounds. 



APPLIANCES FOR USE IN STOREROOM 



75 




76 



STORING 



Inaccurate weighing is inexcusable, because nothing 
has been gained except perhaps an approximation of 
the weight. But this cannot be tolerated if it is 
desired to keep correct records, and correct rec- 
ords are a fundamental condition in manufac- 
turing efficiency. A supply house with inaccurate 
weighing apparatus is either robbing itself or 
its customers. The only remedy is regular and 
frequent testing. Waiting for some flagrant fault 
before resorting to inspection and testing is the 
worst kind of carelessness. 




This truck is equipped with automobile steering gear and knuckles, making 
a right-angle turn possible without any part of the mechanism projecting 
beyond the platform, and at the same time maintaining a four-point contact 
with the floor, keeping the load absolutely steady. 

Trucks 

The problem of handling material in a storeroom 
should have just as much attention paid to it as is 
given to the manipulation of the same material in 
the shop. When a manufacturer is shown a new tool 
by which he can turn out a given amount of finished 
pieces at a saving of 20 per cent, he lends a ready ear 
to listen, but when he is shown a storeroom appliance 
which will effect savings and expedite the movement 
of the goods he too often gives it only casual attention. 



APPLIANCES FOR USE IN STOREROOM 77 

There are many types, styles, and sizes of trucks 
made, all of which have their specific uses, but the 
elevating or lifting truck could with profit be substi- 
tuted in the majority of cases where the old style of 
fixed platform truck is still in use. This was practi- 
cally the only known means of transporting certain 
materials on the floor until the new type became 
better known. The separation of the running gear 
from the platform has revolutionized transportation 
in stores. 

An examination of the illustrations given in this 
chapter will demonstrate their wide adaptability. 
They can be obtained to carry any loads likely to be 
handled in the average storeroom and they can be 
arranged so that the platforms have sufficient clear- 
ance for unevenness in floor conditions, and they are 
good for any grades which can be negotiated with an 
ordinary truck. 

Some of the advantages of the elevating or lifting 
truck will be enumerated. One running gear can have 
any number of flat platforms or boxes as its accom- 
paniment. This means that while one load is being 
transported to its location in the storeroom another 
load is being placed on a platform at the receiving 
end. The truck does not have to wait at either end 
of its journey to be loaded or unloaded. All that is 
necessary is to run the truck under the platform 
and haul it to its destination. This greatly reduces 
the amount of labor required by the old trucking 
system which necessitated a wait at both ends of the 
trip or dumping the material on the floor. 

The platforms being simple and inexpensive, they 
can, if so desired, have the material remain on them 



78 



STORING 




Figure No. 32 
Method of handling packages and material with the old-style truck. 






/- 



r- 

, . — i 



Figure No. 33 
The elevating or lifting truck will move the packages shown here without 
re-handling, and the truck is not delayed at the commencement or end of 
its journey. 



APPLIANCES FOR USE IN STOREROOM 



79 




Figure No. 34 




The upper illustration shows the truck with- 
out platform. The lower one shows clearly 
how the platform fits over frame. The main 
feature of this truck is the ratchet lever for 
raising the load, therefore requiring a minimum 
amount of operating space. It is also furnished 
with a detachable coupler for connecting truck 
to a tractor. 




Figure No. 35 
Columbus Lift Truck. 



80 



STORING 




APPLIANCES FOR USE IN STOREROOM 



81 



while in the storeroom. For example, if forgings are 
being received which will ultimately go into the shop 
in lots of 100, they can be loaded on the platforms 
in this quantity when received and the platforms 
stacked in the store- 
room. When the 
shop sends a requisi- 
tion to the storeroom 
the forgings can be 
delivered immedi- 
ately, and without 
the labor of loading, 
by running a truck 
under one of the 
platforms. This 



much on 
principle 
boxes are 
fact, tote 



the 



is 
same 
as tote 
used ; in 
boxes or 




stacking barrels can 
be used instead of 
platforms. 

The labor item in 
storerooms is further 
reduced, because „ , T _ 

' . . Figure No. 37 

Wlien tne material IS Anything which can be stacked can be carried 

to be Unloaded and on ^ le Pl a tf° rms an d deposited without re- 
. handling. 

placed in bins or on 

shelves, it can be done at any time to suit conditions. 
The platforms can be run alongside the bins when 
material is received and put in the receptacles at any 
convenient time. 

Another point worth mentioning is that when it is 



82 



STORING 



found necessary to stack the loaded platforms in two 
or three tiers, and it is desired to get at the rear tier, 
it can be easily done by running the lift truck under 
the front tiers, pulling them out, and the rearmost 
tier is then accessible. 




Figure No. 38 

Tote boxes, stacking barrels, and other forms of containers can be moved 
easily and rapidly. 

A summary of the principal advantages over the 
fixed platform type of trucks would include: 

1. The investment in trucking equipment would 

be much lower. 

2. Much time is saved because of the elimination 

of some loading and unloading. 



APPLIANCES FOR USE IN STOREROOM 



83 




84 



STORING 




O ,05 

^ 53 

H 05 

P O 

M 






W 



APPLIANCES FOR USE IN STOREROOM 



85 




86 



STORING 




APPLIANCES FOR USE IN STOREROOM 



87 




CO -*H 

-* .2 



s -is 

P g 



STORING 




APPLIANCES FOR USE IN STOREROOM 89 

3. There would be a very appreciable reduction 

in the labor item. 

4. A great saving in floor space would be effected, 

because the platforms can be stacked. 

5. The elimination of some handling would reduce 

the risk of loss by damage. 

6. The trucking system would be more expeditious 

and flexible. 

When required for very heavy duty the load can 
be lowered gradually and effectively by a hydraulic 
check. Electric drive can be substituted for manual 
operation, if the storeroom is a large one or consider- 
able distances have to be covered. The head and 
front wheels make a complete cycle turn, enabling 
the truck to operate in its own length in narrow aisles. 
A further development in elevating trucks is in con- 
nection with simultaneous weighing and transporting. 
The trucks are equipped with scales from which 
can be ascertained the gross, net, and tare weights. 
With these trucks a special set of side bars carry 
the load to prevent any strain on the scale mechanism. 

Gravity Conveyors 

It does not come within the scope of this work to 
discuss all the various methods of moving materials. 
Elevators, lowerators, carrying devices, and conveyors 
which depend on some form of power for their oper- 
ation, it is not proposed to discuss, although they may 
be necessary in many storerooms. The gravity con- 
veyor, however, cannot be passed over, as it is a nec- 
essary part of the equipment of many storerooms, 
or at least is often the link between the receiving room 
and storeroom, or the storeroom and the shop when 



90 



STORING 



they are on different levels and the force of gravity 
can be used. An investment in this form of con- 
veyor is very moderate, and after installation the cost 
of operation is negligible, for it is confined to the 
renewal of a few parts, as may be required. The 




Figure No. 45 
This illustration shows how the gravity conveyor can be adapted to curves 
and other unusual conditions. 

force of gravity costs nothing, and it is ready for work 
every day for the full twenty-four hours. 

It is usually advisable to have the storeroom in 
close proximity to the point at which the goods are 
received into an establishment. Hand-trucking may 
not prove the best means of transporting material 



APPLIANCES FOR USE IN STOREROOM 



91 




o 

« 



92 



STORING 




APPLIANCES FOR USE IN STOREROOM 93 

between these two points, and it becomes necessary 
to use self-propelled trucks or some kind of conveyor. 




Figure No. 48 

A straight run to the storeroom. The capacity is only limited by the grade 

of the conveyor and the loading and unloading facilities. 

The gravity roller conveyor will carry all kinds 
of material or packages having one flat hard surface. 
These articles are conveyed by their own weight, 
provided there is a grade of four per cent. Even if the 



94 



STORING 




. O 
O m 



^ > 

6 



APPLIANCES FOR USE IN STOREROOM 95 

grade necessary to put the force of gravity in motion 
does not exist, it can be secured by elevating the mate- 
rial at the starting point. It may prove more economi- 
cal to do this than to resort to a power conveyor or 
trucking. If the material has to be placed on trucks 
anyway at the end of its journey on the conveyor, 
it may be better to truck it the whole distance. 

Some storerooms located in basements can best 
receive material and goods via a gravity chute, while 
a storeroom intended to serve several departments 
of an establishment could well be located at a suffi- 
cient height to feed raw material to all of them by 
means of gravity conveyors. 

One of the greatest advantages of the gravity 
roller conveyors is its flexibility by means of curves, 
switches, chutes, elevators, and other appliances; 
the conveyors can be run around corners, through 
partitions and floors, and may be laid out practically 
where desired. Conveyors depending entirely upon 
gravity naturally have their limitations, but engineers 
and managers of industrial plants have devoted con- 
siderable attention to harnessing the force of gravity 
to solve their problems, with very excellent results. 

Mechanical Aids 

It is not so long ago that physical prowess was 
considered essential for men engaged in handling and 
storing material, but physical strength in the human 
being has been largely equalized because of the many 
mechanical appliances and aids for doing the work. 
These should be taken advantage of wherever their 
use will serve a good purpose. It is still possible to 
see three or four men struggling with barrels, bags, 



96 STORING 

and cases filled with heavy materials, when perhaps 
seventy per cent of the labor could be saved by the 
use of hoists, barrel stackers, or sack stackers. The 
utilization of these contrivances gives employees the 
opportunity to devote their mentality to still further 
improvements. Intensive, strenuous, monotonous work 
dulls thinking and hinders advancement. 



CHAPTER VII 
Manual Operations 

Dual Nature of Storeroom Work 

IN the operation of a storeroom there is both manual 
and clerical work to perform. It is in respect to 
this dual nature of its functions that the storeroom 
differs from other departments of a business. Both 
sections of the work must be on the same equality 
of accuracy and efficiency. Accuracy in one of these 
and inaccuracy in the other would only lead to con- 
fusion. A helper might hand out 50 bolts, but through 
inadvertance the number might get entered on the 
clerical records as 60. Again, a requisition for 100 
pounds of copper might pass through the clerical 
records correctly, but through a mistake in weighing 
110 pounds might be delivered. Every storeroom 
transaction is susceptible to these delinquencies, and 
it is only by accuracy in both the manual and clerical 
work that a physical inventory will tally with the 
written records. 

Storeroom clerical records can be simple yet com- 
plete, and this fact, together with the general demand 
which exists for bookkeeping accuracy, has placed 
this section of the work in advance of the manual 
work, so far as the percentage of errors is concerned. 
But there is no good reason for this, and the demand 
for better methods in the physical handling of the 



98 STORING 

stores has developed appliances for counting, weigh- 
ing, and measuring which are having considerable 
influence in the right direction. 

General Considerations 

Prompt handling of all material as it arrives in the 
storeroom is an essential feature of successful stores- 
keeping. It is a phase of the work which needs close 
watching, because there is always a tendency, particu- 
larly during busy hours, to get the goods into the room 
and then allow them to lie around on the floor waiting 
for a more favorable time to place them in the bins 
and receptacles. Such methods as these involve the 
risk of damage to the property, makes the storeroom 
untidy in appearance, and is prolific of irregularities 
in deliveries. 

When a requisition is received it is a natural thing 
in making the delivery to take the goods from the 
nearest or most accessible place, which may be a pile 
which has been dumped at some convenient location. 
With some material this may not be important, but 
there are instances where the older material should 
be given out first. Anyway it is good practice to make 
it a rule to deliver all material in the sequence in which 
it was received, giving priority in delivery to the ma- 
terial which has been longest in the storeroom. 

Every storeroom probably contains some articles 
which are seldom called for, while others are in con- 
stant demand. The latter should be placed in con- 
venient locations to facilitate their delivery. Heavy 
material should be stored at a convenient height for 
loading onto trucks to prevent any unnecessary labor 
in raising or lowering it. 



MANUAL OPERATIONS 99 

Great care must be exercised in placing articles 
in their designated places. It is just as bad to dump 
some quarter-inch nuts in a bin containing five-six- 
teenths-inch nuts as it is to make an entry in the 
sales ledger against the wrong customer. It is prob- 
ably worse, for it is likely to lead to more confusion. 
The mixing of the wrong sizes, or of the same sizes 
of different grades, is perhaps the most prevalent 
fault in storeroom practice. 

Next to the mixing of sizes and grades the com- 
monest fault is having more than one shelf or bin 
for the same article. If all storerooms were equipped 
with adjustable racks, bins, and shelving, as described 
in Chapter Five, there would be no occasion for this, 
because the receptacles can be expanded or contracted 
at will to correspond to the increase or decrease in 
the quantity of goods on hand. 

With the old-style wooden bins or metal bins of 
the inflexible type it is impossible to provide for an 
increase in the quantity of material being stored, 
except by placing it in more than one receptacle, and 
there are many objections to such a course. If more 
than one bin or location is assigned to an article, the 
man delivering the material is apt to overlook the 
second bin. The regular bin being empty, he fails 
to remember that there is more of the same article 
in another bin. The use of more than one location 
tends towards the accumulation of shelf-worn or old 
stock, because the nearest receptacle will invariably 
be approached first and the more remote one be 
neglected. Duplication of this character only leads 
to more errors, because it gives the helpers more things 
to remember. 



100 



STORING 



Counting 

Even when goods are weighed or measured they 
invariably have to be counted. For example, 20 
barrels of material may be received. The material 






Figure No. 50 

Automatic counting of small parts. Whatever the 
number is in the pan on the platform it will be accu- 
rately recorded. 



is checked by weight, but the number of barrels has 
to be counted. This is an extreme illustration, the 
antithesis of which would be 20 barrels of very small 
articles which must be counted. The first instance 



MANUAL OPERATIONS 101 

is a simple mental count, but the latter could not 
be done accurately except with the aid of some me- 
chanical contrivance. Counting is the biggest prob- 
lem in receiving and delivering articles from stores 
and deserves some discussion. 

It must first be recognized that the masses of things 
in a storeroom come in like units or in units which 
vary so slightly in weight and size that the variations 
can be neutralized on a bulk machine count. Con- 
sequently the great problem is one of counting with 
the least expenditure of time and labor. 

The counting methods now in use can be logically 
divided into five separate systems as follows: 

1. Hand Counting. 

2. Weighing and Estimating. 

3. Even-balance Scale. 

4. Proportional Scale. 

5. The Automatic Counting Machine. 

The importance of the subject demands a short 
review of each of these methods. 

Hand Counting 

The usual method of operation is to make a mark 
with a pencil as the hand-counter finishes a hun- 
dred. In hand counting, therefore, there are three dis- 
tinctly different operations: the hand operation, the 
mind operation, and the pencil operation. To keep 
this up long enough to count any large quantity 
creates unusual mind strain, and errors are often made. 
It is evident that if a person counts 1000 small pieces 
by fives, 200 separate operations have been performed, 
both mental and physical. If the pieces are large, 



102 STORING 

so that only two at a time can be counted, then it 
means 500 similar mental and physical operations. 

When counting in this manner a person may have 
his attention diverted from the task by some form 
of interruption and is liable to forget whether he has 
made the pencil notation, or may have to recount. 
Modern business methods do not tolerate uncer- 
tainties of this nature. Cost keeping in a manu- 
facturing establishment would be "all at sea" if 
1100 parts were handed out of the stores to the pro- 
duction department, instead of 1000, and the stores 
records would be in confusion. 

A valuable aid to hand counting is the mechanical 
counter. By using this the worker has only to perform 
the physical operation. These counters can be used 
to great advantage when it is necessary to handle 
each piece for the purpose of inspection or examina- 
tion. In making the movement necessary to examine 
the article the hand or arm of the worker comes in 
contact with a knob or lever on the counter and the 
record is automatically made. 

Counting by Weight and Estimate 

In any modern establishment it is evident that hand 
counting could not be tolerated, because of the expendi- 
ture of time and labor, and because of the uncertain- 
ties of the final results. To save time and labor the 
weighing and estimating method is used. This repre- 
sents the first step between hand counting and the use 
of a machine made especially for the purpose. 

Any ordinary weighing scale can be used in work- 
ing with the weighing and estimating method. The 
weight is first obtained of a given number of the 



MANUAL OPERATIONS 



103 



articles to be counted, preferably an even number for 
the sake of rapid calculation. For example, if 100 
articles weigh six pounds then sixty pounds of the 
same article would represent a total 1000 pieces. 




Figure No. 51 

However small or large the pieces are they can be accurately counted in 
any kind of container. 

This method has the advantage of greater speed and 
fewer operations over hand counting, but it is still 
susceptible to inaccuracies from mental computation. 
The ordinary scale is not always accurate, and any 



104 STORING 

error in weighing the smaller quantity would be in- 
tensified in making the computation for the larger 
quantity. Very few weighing scales of any con- 
siderable capacity can be compared with mechanical 
counting machines as to sensitiveness. And the de- 
gree of sensitiveness is the chief factor in determining 
the efficiency of a machine used for counting by bal- 
ance. The least hesitation of one of these devices 
in responding when the burden on the platform is 
increased or decreased is a flaw on the accuracy of 
the machine. Exceedingly quick response to what 
is technically termed " sensitive break" is absolutely 
necessary to accuracy. 

Even-balance Counting 

Like the weighing and estimating method this is 
an attempt to improve on hand counting by some 
mechanical device. It commences by deciding on 
some number as a base. For instance, if 50 is the 
base number these are counted by hand and placed 
on the tray on one side of the scale. A quantity is 
then placed on the opposite tray or receptacle until 
an even balance is struck. The two together should 
then total 100 pieces and these being placed on one 
tray can be balanced by a like quantity, giving a 
total of 200 pieces. 

This process can be continued indefinitely until 
the quantity remaining is too small to create a balance. 
Hand counting must again be resorted to to complete 
the count. This method, while quicker than hand 
counting, has many of the drawbacks of the weighing 
and estimating method, with the added defect of a 
final hand count. 



MANUAL OPERATIONS 



105 



Counting with Proportional Scales 

Proportional scales are arranged to work according 
to certain set, even ratios. These ratios usually 




Figure No. 52 

The work of counting can be done by boys or girls. 
There are no mental calculations to make. Weights can 
be taken on all machines shown in Chapters VI and VII. 

range from 10 to 1 up to 200 to 1. A scoop hangs 
from the end of the scale beam, serving as the counter- 
poise. With a ratio of 10 to 1, one hundred small 
pieces in the counterpoise scoop will balance 1000 
similar pieces on the platform. 



106 



STORING 




MANUAL OPERATIONS 



107 



To count the contents of unknown bulk lots with 
this scale, the material to be counted is put on the 
platform, while enough pieces are put in the counter- 
poise scoop to bring the beam to a "low balance." 
Then a single piece is removed from the scoop, giving 
a "high balance." Next, enough pieces are taken 




Figure No. 54 
The Root Counter. 
This counter is arranged so that the girl's arm presses the 
lever each time a sheet is taken from the pile. In this way 
counting and inspecting are done simultaneously. 

from the platform to make a perfect balance. The 
total of the pieces removed from the platform is 
added to the total of pieces on the platform, which 
total has been determined by multiplying the ratio 
of the machine by the number of pieces in the counter- 
poise scoop. 



108 



STORING 



To count out a specified number of pieces with the 
proportional scale a number of pieces are placed 
in the counterpoise, in number equal to 1/10, 1/50, 
or 1/200 of the total quantity to be counted, the 
proportion depending, of course, upon the set ratio 
capacity of the scale in use. The platform is then 
burdened with a load of pieces sufficient to bring the 
beam to the perfect balance point. Without further 

adjustment of beam or 
counterpoise scoop, it is 
then possible to count 
out as many lots as de- 
sired by simply repeating 
the process of loading the 
platform to the balancing 
point. These scales can 
also be used for the pur- 
pose of weighing material 
as well as for counting. 

Automatic Counting Ma- 
chines 

The counting machine, 
Figure No. 55 which retains the form of 

Stacking barrels can be used to great a Scale, has reduced the 

advantage in many storerooms. They nrnppqq n f rnp^haniofll 

can be had in sizes suitable for storing PrOCeSS OI mecnanicai 

the number of articles usually called for counting to the point 

y * e 8 op ' where, with the exception 

of the comparatively small hand count necessary to pro- 
vide the ratio number necessary to operate, all mental 
computations have been eliminated. The results are 
secured almost automatically and the total counts 
are indicated in plain figures on graduated counting 




MANUAL OPERATIONS 



109 



bars which are attached to the beam. These machines 
have the usual small scoop to take the ratio count of 
pieces, but this scoop or ratio pan slides along the 
counting bar, instead of resting in fixed position on 
the counterpoise. 

To obtain the count of an unknown quantity of 
pieces with the counting machine, the tare of the 
package or contents is set out on one of the weighing 
beams, of which there 
are usually two. From 
the contents of the 
package the number 
of pieces required for 
the ratio pan are taken 
out; the number re- 
quired for this purpose 
is indicated on the 
counting bar. The 
ratio is then moved 
along the counting 
bar until the beam is 
in balance. A pointer 

. T . . . ,. . , Figure No. 56 

indicator immediately Stacking tote Ws made by The New 

above the ratio pan Britain Machine Co. These have been 
x11 , ,i referred to in Chapter VI. 

then denotes on the 

counting bar the exact number of pieces resting on the 

platform. 

Where it is desired to count in certain specified 
lots, say 144, the tare of the package is set out as above 
indicated, the pointer indicator is set against the 144 
mark on the beam, and the package is then loaded 
until the beam balances. 

These counting machines are made to cover practi- 




110 



STORING 




MANUAL OPERATIONS 



111 



cally any known requirements in the way of counting. 
They range from delicate machines, which will record 
the count of pieces so small that it takes 25,000 to 
equal an ounce, to the heavy dormant type of machine 
which will count pieces weighing a ton. 

Having such machines available it is conservation 
of time and energy to employ them. There is cer- 
tainly no room for 
comparison as to 
speed, simplicity, or 
automatic accuracy 
between the results 
obtained with these 
machines and from 
any of the more anti- 
quated methods. 
Why should we have 
adding machines and 
similar devices in the 
office, and no me- 
chanical counting de- 

,-, , Figure No. 58 

vices in tne store- „ . , , ., .. . „,, , 

Tote boxes of the nesting type, lhe tea- 
rOOm Or factory? ture of these which commends their use is 
J?anh ia vn a++^™r»T that when empty hundreds of them can be 

i^acn is an a-iienipi nested and stacked in a very small space 
at the solution of the 

problem of obtaining a maximum saving of time and 
of mental and physical energy by some automatic 
mechanical means. 




Summary 

Complete accuracy in the manual operations of a 
storeroom would be exceedingly difficult to maintain 
without cleanliness, orderly arrangement of the stock, 



112 STORING 

and general tidiness. These must be enforced. With 
these conditions, coupled with efficient mechanical 
devices, well-arranged bins, shelves, and other re- 
ceptacles, and finally with alert, capable, and willing 
helpers there will not be much go wrong with store- 
room operations. 



CHAPTER VIII 

Clerical Work. — Inventories 

The Stores Records 

THERE is nothing complicated or intricate in 
connection with stores bookkeeping and clerical 
work, but it must be accurate. This last statement 
is, perhaps, true of all bookkeeping, but it applies 
with unusual force in connection with stores records, 
because an error in them can sometimes only be 
brought to light and rectified by a physical count of 
articles in the stores, which might involve consider- 
able delay and expense. With other forms of book- 
keeping errors can be discovered and rectified by 
reference to some allied clerical work. 

Probably the simplicity of the work has some bear- 
ing on the inaccuracies which appear, but this is no 
good reason for their appearance. The more prob- 
able reason is that too many accountants look upon 
the work as unimportant, at least that part of the 
clerical work which has to do simply with recording 
the quantity of material in stock, while at the same 
time they will lay greater stress on keeping a stores 
account which reflects the value of the goods in the 
storeroom. To the custodian of the property, and in 
control of its movements in and out of the stores, 
quantities, sizes, and weights are of greater moment. 

The purpose of this work being to limit the dis- 
cussion to storekeeping problems, it is not intended to 



114 STORING 

dip deeply into financial problems and cash values. 
Such problems come more properly under accounting 
work, and any digression into these problems would 
involve cost keeping, which in itself is a subject on 
which volumes have been and could be written. 

To compile and maintain the stores records, certain 
forms and documents are necessary. These will be 
taken up in detail in a later chapter dealing with the 
routine work. All stores clerical work is based upon, 
and revolves around, the perpetual inventory, or stores 
ledger. This instrument, therefore, will be discussed 
in detail from different angles. 

The Stores Ledger 

The ledger accounts with customers should not be 
more accurate than the ledger or perpetual inventory, 
which records quantities received into stores, deliv- 
ered out of stores, and balances on hand. This should 
be kept posted so closely that complete detailed in- 
formation can be obtained from it monthly, weekly, 
daily, and hourly. The information required from 
a perpetual inventory is not just what quantities of 
each article are in the storeroom, but it should tell 
what quantities are on order, what have been received 
in any given period, what has been delivered or the 
rate of consumption, and whether that consumption 
is uniform all the year around or subject to variations. 

The record can be extended so that a balance of 
credits against the stock can be proven with the daily 
sales, also a balance of the debits against the pur- 
chases daily, thereby proving the work as well as 
indicating the exact amount of stock on hand each 
day, and at the end of a month the actual value of 



CLERICAL WORK — INVENTORIES 



115 



each commodity, even in case of fluctuations in prices. 
These features, however, go beyond strictly storeroom 
work, and it is not proposed to discuss them. 

Machine Bookkeeping 

As the use of the bookkeeping machine is being 
applied to stock records, its possibilities should not be 
overlooked. Owing to the 
absolute control of the 
work done it eliminates 
the necessity of some of 
the higher priced labor 
which hand methods 
make indispensable. The 
work is turned out at far 
greater speed than can be 
attained by hand, it is 
more legible, and part of 
the higher grade labor can 
be allocated to other work. 

By way of illustration 
in its application to per- 
petual inventories a ma- 
chine to handle this class 
of work in such a way as to show the necessary results 
must be extremely flexible and simple of operation and 
it must furnish the required results without attention 
on the part of the operator beyond printing the proper 
items in their proper columns. Two cross computa- 
tions must be made simultaneously, one of quantities 
and one of values. To the quantity in stock, with its 
value, must be added the quantity and value of mer- 
chandise placed in stock, the new total of quantity 




Figure No. 59 
Elliott-Fisher Bookkeeping Machine. 
Perpetual inventories of the card or 
loose-leaf type can be written up with 
a bookkeeping machine. The forms 
are placed on the flat surface shown 
under the machine. 



116 STORING 

and value shown in the register being then printed in 
the balance columns. Likewise, withdrawals of quan- 
tity and value from stock must be deducted and the 
balances shown. Simultaneously with these opera- 
tions a control total of the value of the merchandise 
put into stock or taken out must be furnished daily, 
and where required the machine should also furnish 
totals of quantity placed in or withdrawn from stock. 
This method of handling the stock ledger gives a per- 
petual inventory of all classes of goods, as well as an 
immediately available total of their value, both as 
units and as a whole. 

The Physical Inventory 

Before discussing the clerical inventory from other 
viewpoints, it is necessary to make some observations 
regarding physical inventories. It would, perhaps, 
seem that these could be dispensed with if the clerical 
inventory were kept perfectly accurate. Many argu- 
ments have been advanced advocating the abolition 
of physical inventories, and the matter has been given 
some publicity in technical publications. It is pro- 
posed to recapitulate some of these for the better 
elucidation of the problem. 

It is claimed that although the clerical records may 
show the true state of the stock as far as the docu- 
ments go from which the record is compiled, still it 
might not represent the true condition of the stock. 
For instance, suppose a requisition was received for 
200 washers, and through a mistake on the part of 
the helper 300 were delivered, how would such a 
mistake be discovered except by a physical count? 
Another instance would be in the event of pilfering 



CLERICAL WORK — INVENTORIES 117 

or theft; this could never be discovered except by 
making a physical count or examination of the mate- 
rial and comparing it with the clerical record. 

In a manufacturing plant it is claimed that for a 
certain period every year the plant must be closed 
down for repairs, renewals, and replacements, during 
which period a physical inventory can be taken and 
a stores " house cleaning" indulged in, because at 
such a time most of the help in the stores has to 
be paid anyway and it costs nothing to make the 
inventory. 

It is contended also that the fact being known 
that a physical inventory will be taken prevents pil- 
fering, and at the same time is an incentive to ac- 
curacy on the part of the clerks keeping the clerical 
records, because they know a check will be made 
against their work and this prevents carelessness. 

The stock of some materials, such as coal and sand 
and anything which is not counted or weighed out in 
accurate quantities, can only be approximated from 
the clerical records. To get a correct inventory of 
these it is imperative that physical particulars be 
taken. 

There are, of course, some concerns who keep no 
perpetual inventory. This omission is, perhaps, more 
prevalent among small manufacturers than any other 
class of business men. They probably keep a record 
of the quantity of material used in production work 
and duly charge it to the respective shop orders. 
They take an annual physical inventory to enable 
them to prepare a balance sheet and ascertain what 
profit or loss they have made during the year. This 
is, of course, not in any sense a check on the incom- 



118 



STORING 



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120 STORING 

ings and outgoings of the storeroom and is only given 
as an illustration of outworn methods which, however, 
are still permitted to exist. 

The Perpetual Inventory 

It is universally conceded that a perpetual inventory 
is essential; and it is asserted that if properly kept 
no other form of inventory is necessary; that it can 
be brought to a state of perfection and accuracy, 
and that periodic physical inventories can be dispensed 
with. Statements have been made that this course 
has been adopted in some establishments, resulting 
in large savings. 

It is claimed that in a manufacturing plant it is 
a very serious loss to close down for a week to take 
inventory. This loss falls heavily on the workmen, 
because it takes from them about one fiftieth or two 
per cent of their annual income. The overhead ex- 
pense of the establishment goes on during this period 
without any production work being done. The sal- 
aries also of all those engaged in the work of taking 
the inventory while production is at a standstill are 
a dead loss, for while nothing is being produced they 
cannot be distributed as a burden on the factory. 

Another point made is that perpetual inventory 
figures are more reliable than those of a physical 
inventory unless the latter results are checked by 
recounting and reweighing. If this has to be done 
to insure accuracy it is equivalent to taking two 
inventories. If the periodical physical inventory is 
dependent for its accuracy solely on counting and 
weighing which may have been done hurriedly or 
under stress, then it is not likely to be as reliable as 



CLERICAL WORK — INVENTORIES 121 

the clerical records. This work is frequently done 
under pressure, largely in overtime. The persons 
engaged often labor long hours to complete the work 
within a specified time, and sometimes amid the con- 
fusion of changing and rearranging the stores, which 
is a fruitful source of errors. 

Summary 

The whole discussion can be condensed into a few 
sentences. Both inventories are necessary-. If a 
banker kept absolutely correct books, would that 
prove that no cash was missing? Would he go on 
indefinitely without checking one against the other? 
It is a fallacy to think that either can be dispensed 
with. The dual nature of the storeroom work has 
been mentioned before. In the matter of inventories 
its duality is still more in evidence. 

There are, however, conditions and exceptions which 
need elucidating and in doing this the ideal method 
of inventorying will be explained. 

Correct Inventorying 

It must be obvious to the student and close ob- 
server of storage problems that both the clerical and 
physical inventory are necessary, or rather that the 
clerical records are absolutely imperative, while the 
physical feature is more in the nature of a check on 
the former. To say that it is positively essential 
at periodic intervals to count, weigh, measure, and 
tabulate every item in the stores is not literally true, 
because such a comprehensive tabulation is not really 
necessary. There is an alternative course which can 
be adopted and which will cover all requirements 
deemed essential for checking the bookkeeping records. 



122 STORING 

The ideal inventory is the perpetual record com- 
piled accurately with the entries made immediately 
after any material is put into or taken out of the 
bins. The records should be so accurate that at any 
moment one could count the pieces in any bin and 
find the contents tally with the balance shown on the 
records. This state of perfection may be approached 
very closely, but the complete elimination of all errors 
cannot always be attained while the human factor 
has to be considered. The problem, then, is to get 
this work executed to conform as nearly as possible 
to the ideal outlined. 

The perpetual inventory is compiled from the doc- 
uments or vouchers which show the entries into and 
out of the stores. These documents are not as a rule 
as legible or clearly defined as the documents from 
which debits and credits are entered in the ledger with 
customers, yet no accountant would take these entries 
as correct without some verification or check. It is 
equally essential to verify the entries in the stores 
ledger. 

It is an excellent plan for a storekeeper to con- 
sider himself in the position of a banker. The re- 
cipient of cash at a bank must give a check or receipt 
and when cash is deposited a deposit slip must be 
made out. These papers form definite evidences of 
the transfer of cash, and when collected, tabulated, and 
totaled show unmistakably exactly what has passed 
in and out. Now a storekeeper should have cor- 
responding papers and should jealously guard them, 
for these form the basis of his clerical work. 

The physical check, for it can scarcely be called 
an inventory, should be carried out at convenient 



CLERICAL WORK — INVENTORIES 



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124 STORING 

times. In large storerooms the dislocation and inter- 
ruption of regular routine caused by the stupendous 
task of counting or weighing or measuring and then 
tabulating everything in the storeroom should not be 
tolerated. The alternative to this is to do the work 
at any time an opportunity offers, but the whole 
storeroom should be covered in this way within cer- 
tain time limits. Possibly some active items should 
be checked at more frequent intervals than others. 

By following this practice closely and covering 
all of the stores within a prescribed period there will 
not be much go wrong, and if there are errors and 
discrepancies they will be quickly discovered and 
rectified. They can be rectified by recourse to the 
documents from which the records were written up. 
In a manufacturing establishment these usually pass into 
the cost department, and in a supply house they would 
finally go to the accountant. In either case they should 
be preserved long enough to enable the storekeeper to 
have access to them to clear up discrepancies. 

There are usually lulls in storeroom routine oper- 
ations when this work of checking can be done, but if 
it cannot be carried out by the regular help, or if it is 
desired to have some independent help perform the 
task to prevent collusion, there are several persons 
who could be called upon from the receiving depart- 
ment, shipping room, or office. In large factories, 
where inspectors are employed in the production de- 
partment, these men might take some part in it. 

Other Considerations 

It is possible that there are storerooms which con- 
tain comparatively few items, and these may be of a 



CLERICAL WORK — INVENTORIES 



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126 STORING 

bulky nature, where the physical check may be a 
matter of no great consequence. It can never be 
said to be entirely negligible. It is probably in con- 
nection with such storerooms that the contention has 
been made that physical checking is unnecessary. 
Still, it is not good practice to dispense with it entirely. 
There is no insuperable objection to a periodical 
inventory being taken if the activities of the establish- 
ment have to be suspended anyhow for some other 
reason. But to suspend business just to take an in- 
ventory is seldom necessary and cannot be commended. 
As these pages are being written the author had an 
experience of this character with a very large steel 
concern, which for one week made no deliveries and 
put many of their customers to great inconvenience. 
With many manufacturers custom has decreed the an- 
nual closing down for inventory purposes and they do 
not seem to be able to break away from it. To pro- 
duce at a profit is what a manufacturing establish- 
ment exists for. To suspend this function cannot be 
considered good policy. Inventory taking can be 
done when it does not entail a loss of profitable pro- 
ductivity. 

Values and Stores Inventories 

Generally speaking a storekeeper thinks and cal- 
culates in quantities, not in values. In their larger 
aspects, and outside of the storeroom physical con- 
ditions which surround a storekeeper's work, values 
must be considered. If a storekeeper ponders these 
his vision projects itself into the purchasing agent's 
sphere in one direction and into the cost accountant's 
work in the other direction. There is no objection 



CLERICAL WORK - INVENTORIES 



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128 STORING 

to a storekeeper having vision beyond his job, but it 
is from a desire to confine this discussion strictly 
to stores problems that so little has been said of values. 

Some concerns insist on the records of values kept 
on the same form as the records of quantities, and an 
illustration is given of such a form in Figure 64. 
This scheme may be found advisable with some smaller 
concerns, and is certainly desirable when the account- 
ing or cost departments do not keep such records. 

In manufacturing establishments there are two 
methods of pricing the material delivered from the 
stores to the shop. The cause for there being more 
than one method is the fact that there is so often a 
variation in the price of articles received into the 
stores. For example, 1000 pounds of copper is re- 
ceived costing 40 cents per pound; 400 pounds of this 
is delivered to the shop, leaving a balance in the 
stores of 600 pounds. At this point 500 pounds more 
are received at 43 cents per pound. The total quantity 
in the stores would then be 1100 pounds and the 
average price would be 41.36 cents per pound. 

It is a practice with some establishments to average 
the price immediately there is a change, because it is 
claimed that it is better to have one price apply on 
all material of the same kind. This is really making 
the stock of material in the stores subject to all mar- 
ket fluctuations. It is, of course, subject to these 
fluctuations, but for cost-keeping purposes in the 
factory, fluctuations of this character cannot be con- 
sidered. This point has been discussed in Chapters 
Two and Three. Those who adopt this method 
argue that it is less liable to lead to mistakes, simpli- 
fies pricing of material, and renders the calculations 



CLERICAL WORK — INVENTORIES 129 

connected with arriving at the value of an inventory 
much easier. 

On the other hand, there is much to be said against 
it. For instance, suppose the sales department made 
a contract to sell certain articles, the product of the 
factory, and among other materials in making these 
articles 1000 pounds of copper was needed. The shop 
might withdraw 600 pounds to commence the work, 
but on subsequent withdrawals the price would be 
raised. This is not fair or reasonable, because the 
original contract for the sale of the articles was made 
on the basis of 40 cents per pound for copper and it 
was procured and delivered into the stores at that 
price. 

While it entails a little more clerical work it is 
good practice to charge out the 1000 pounds at the 
price paid, even if it was delivered in quantities of 
10 or 20 pounds at a time. The theory in all stores- 
keeping is that the material which has been in the 
stores the greatest length of time should be delivered 
first; and this being the case, then it should be charged 
out at its own price, and not at the price of some later 
delivery. 

In many manufacturing operations it is not de- 
sirable to have the stores show a profit or a loss, which 
it would do if the average pricing feature was in vogue. 
The only way to obviate this is to adopt the plan of 
charging the outgoing material at its incoming price. 
Of course, the regular percentage must be added to 
cover stores costs, and this percentage can be figured 
so closely that over a period of one year the balance 
one way or other is negligible. 



CHAPTER IX 

The Stores Department 

The Storekeeper 

THE man in charge of the stores of any establish- 
ment holds a responsible position. If it is a 
concern with many branches or factories he usually 
carries the title of General Storekeeper and would 
have assistants at each factory or branch. In such 
cases he may have under his control property worth 
millions of dollars, and his responsibility is a heavy 
one. Many concerns do not take this view of a store- 
keeper's duties, but look upon him as a man who 
simply has charge of receiving into and delivering 
out of the stores the material and articles used or 
needed in the establishment. He is not supposed to 
have a thinking job, but to have only physical duties. 
In many cases, even, the clerical work is taken from 
him and handled in the accounting office. 

The position of a storekeeper needs better recogni- 
tion; it needs recognition on a basis somewhat differ- 
ent from that which is usually accorded it. Sufficient 
consideration has not been given to the potentialities 
of the keeper of the stores. He is in complete control 
of a very large proportion of the wealth of many 
concerns. If he is not in complete control, it is be- 
cause of lack of ability and vision on his part, or 
because he is not appreciated at his full worth, or 
because he is not given a standing commensurate with 
that to which he is entitled. From a wide experience 



THE STORES DEPARTMENT 131 

the author's opinion is that a sufficiently high stand- 
ard is not placed on the position of the storekeeper. 
Observation will disclose plenty of instances where he 
is considered as a useful man to place articles in bins 
and on shelves provided for him, and to hand them 
out as needed. He is too often regarded as an ampli- 
fied laborer, rather than as a man big enough to have 
a keen insight into the affairs of a concern. 

This fact must be recognized — and there is ample 
evidence that many executives are beginning to recog- 
nize it — that storekeeping problems are problems 
of vital importance in the economics of business; 
they are of vital and individual importance in every 
establishment. This being so, then let us put in con- 
trol of the vast amount of wealth in storage men who 
have the ability, capacity, keenness, and foresight to 
solve these problems. 

Sphere of Usefulness 

In Chapters Two and Three some points were dis- 
cussed on storage economics. No concern which car- 
ries any material in storage for long or short periods 
can afford to ignore or refuse consideration to storage 
problems. The man who knows most about his 
business seldom fails, and the one who knows least 
is usually the one who does fail. A very large per- 
centage of business failures are caused by buying too 
much or too little. The act of buying, however, is 
often only incidental; the real cause of the failure is 
frequently through lack of consideration to the after 
results, — the consequences which follow buying, — 
and this includes the care of the material while it is 
in the possession of the buyer, that is, while in storage. 



132 STORING 

An establishment composing many departments may 
use many varieties of material, and some of the de- 
partments may not come in contact with material 
used in other departments, but the storekeeper comes 
in contact with them all and long practice will give 
him a broader acquaintance and knowledge of the re- 
quirements of a concern than any other man. While 
he may not have such an intimate technical knowl- 
edge of the material as the man who is actually work- 
ing it, still he should have some very good information 
of its general characteristics. 

In the matter of the supplies used in and around 
an establishment the storekeeper should have a de- 
ciding voice. He should be a man who can determine 
the utility of an article. In some manufacturing 
plants very large sums are expended annually for such 
things as soap, cleaning compounds, disinfectants, 
oils, brooms, etc., and considerable duplication exists 
which could be avoided by placing the control of them 
entirely in the hands of one man, instead of permitting 
the supply of them to be influenced by the likes, dis- 
likes, and prejudices of each department. Being in an 
independent position, serving all departments with 
equal fairness, he is in a position to weigh all the points 
connected with furnishing supplies with good judgment, 
and to give a decision fairly and judicially. 

Relations with other Departments 

The storeroom exists as a place of safe keeping for 
the materials needed throughout the establishment. 
Its resemblance to a bank can be again demonstrated, 
for it is the place of deposit of the wealth of a con- 
cern as represented in materials and supplies. It 



THE STORES DEPARTMENT 



133 



O O 



o o 



MANILA TRANSMISSION ROPE 



Circum- 
ference 
of Rope 
Inchaa 





Approximate 
Weight 
per Foot 


Approximate 
Breaking 


Largest 

Working 


Length 


Diameter 


Maximum 


Diameter 


of Smallest 


R.P.M. 


Inches 


4-Strand 


Strength 


Tension 


Splice 
Feet 


Sheave 


for 5000 




Pounds 


Pounds 


Pounds 


Inches 


ft. per mis. 


X 


0.20 


4,200 


112 


7 


30 


650 


Ji 


0.26 


6,700 


153 


8 


35 


550 


1 


0.34 


7,500 


200 


10 


40 


475 


1% 


0.42 


8,900 


250 


10 


45 


425 


IX 


0.52 


11,700 


310 


10 


50 


400 


IH 


0.65 


13,200 


380 


12 


55 


. 350 


W 


0.76 


16,700 


450 


12 


60 


320 


i# 


0.87 


18,500 


530 


12 


65 


290 


*X 


1.04 


23,000 


610 


12 


70 


270 


2 


1.34 


30,000 


800 


14 


80 


240 



Approz. 
Tens ion 
Weight 
Founds 



2* 

5* 

3X 
4X 

i* 

5X 
6 



95 
125 
175 
225 
275 
325 
375 
425 
550 
650 



"Weight per foot = 0.34 X Diameter 2 . Breaking Strength = 7500 X Diameter 2 . Maximum Tension 
taken at 200 X Diameter 3 . Diameter smallest Sheave advised = 40 X Diameter. 



CONTRACT WITH 
DATE . , , 



EXPIRES. 



AVERAGE MONTHLY CONSUMPTION. 



ORDERS PLACED 



Figure No. 65 

The data on rope can be obtained from catalogues and on the same sheet 

a record can be kept of orders placed. 



134 STORING 

exists as a unit in an organization to supply from its de- 
posits the needs of the other units. The attitude of the 
other departments will, therefore, be a reflection of the 
stores department's service to them and to some extent 
the gauge by which its efficiency will be measured. 

The storekeeper should be in sympathy with the 
requirements of other departments, particularly in 
the matter of supplies, if these are under his control. 
Having control of these places him in a position where, 
should his decisions run counter to the desires of other 
departments, he may be accused of being out of sym- 
pathy with the legitimate aims and purposes of those 
departments. For this reason a certain amount of 
tact and diplomacy must be exercised. 

Catalogues and Information 

Every storekeeper should have information about 
the material and articles under his charge. He should 
know something about specifications and should be 
able to define correctly all goods by their recognized 
commercial definition. Specifications and definitions 
have already been discussed in Chapter Four. In 
compiling these definitions the storekeeper will have 
need of a good line of catalogues. 

It is not just the fact that catalogues give the trade 
names of articles, the different sizes in which they are 
made, and the different grades, but they contain valu- 
able technical information which forms a liberal 
education for the men in the storeroom. It must be 
remembered that technical information in catalogues 
is frequently written by experts in their particular 
line, by men whose ideals are the perfection of their 
product. Such information in catalogues can gener- 



THE STORES DEPARTMENT 



135 



O O 



o o 



TABLE OP WEIGHTS OF 

SHEET COPPER 

" Per Square Foot, and Thickness Per Stub* Gaogre 

Rolled Copper has specific gravity of 8.90. One cubic foot weighs 558.125 lbs. 

Special sizes made to order. 



Stubs 
wire 
gauge 


Thickness in 

decimal parts 

of 1 inch 


Weight 
per square 

foot . 
in ounces 


Weight of 

sheet 
14x48 in. 
in pounds 


Weight of 

sheet 
24x48 in. 
in pounds 


Weight of 

sheet 
30x60 in. 
in pounds 


Weight of 

sheet 
86x72 in. 
in pounds 


Weight of 

sheet 
48x72 in. 
in pounds 


35 
33 
31 

28 

27 


.00537 

.00806 

.0107 

.0134 

.0161 


4 

6 

8 

10 

12 


1.16 

1:75 

2.33 
2.91 
3.50 


2 
3 

4 
5 

6 


3.12 

4.68 
6.25 
7.81 
9.37 


4.50 
6.75 
9. 

11.25 
13.50 


6 

9 

12 

15 

18 


26 
25 
24 
22 
21 


.0188 
.0215 
.0242 
.0269 
.0322 


14 
16 
18 
20 
24 


4.08 
4.66 
5.25 
5.83 
7. 


7 

8 

9 

10 

12 


10.93 
12.50 
14.06 
15.62 
18.75 


15.75 

18 

20.25 

22.50 

27 


21 
24 
27 
30T. 
86- 


19 
18 
16 
15 
14 


.0430 
.0538 
.0645 
• .0754 
.0860 


32 
40 
48 
• 56 
64 


9.33 
11.66 
14. 
16.33 
18.66 


16 
20 
24 
28 
32 


25 

31.25 

37.50 

43.75 

50 


36 
45 
54 
63 
72 


48 
60 
72 
84 
96 


13 


,095 
.109 
.120 
.134 
.148 


70 

81 

89 

100 

110 




35 

40% 

44% 

50 
55 - 


55 
63 
70 
•78 
86 


79 

91 

100. 

112 

124 


105 


12 
11 
10 




122 
134 
150 


9 




165 


8 


.165 ' 
.180 
. .203 
.220 
.238 


123 
134 
151 
164 
177 




61 
67 

75% 

82 

88% 


96 
105 
118 
128 
138 


138 
151 
170 
184 
199 


184 


7 
5 




201 
227 
246 


4 




266 


3 
2 
1 


.259 
.284 
.300 
.340 


193 
211 
223 
253 




96 
105% 
111% 
126% 


151 

165 

. 174 

198 


217 
238 
251 
285 


289 
317 
335 








380 



Approximate Weight of Sheet Copper per Square Foot in Fractional Pasts 

of an Inch 

•fein. thick... , 3 lbs. to the square foot 

% in. thick 6 lbs. to the square foot 

% in. thick 12- lbs. to the square foot 

% in. thick 24 lbs. to the square foot 

1 in. thick , .46% lbs. to the square foot 

The area of a circle isequal to the square of the diameter multiplied by 0.7854. 
The circumference of a circle is equal to. the diameter multiplied by 3.1416. 

To Ascertain the Weight of Copper — Find the number of cubic inches in the 
piece, multiply by 0.3214, and the product will be the weight' in pounds. . • Or, 
multiply the length and breadth (in feet) and that by the pounds per square foot. 

These weights are theoretically, correct, but variations must be expected in 
practice. 



Figure No. 66 
Method of recording information on sheet copper. 



136 STORING 

ally be accepted without reservations. But at the 
same time it must not be forgotten that catalogues are 
advertising mediums, and advertisements cannot al- 
ways be taken at their face value. Catalogues, there- 
fore, which contain general statements praising the 
articles described must often be considered as rating 
them above par, although it must be admitted that 
the modern tendency in catalogues is towards exact- 
ness in the claims made. 

However, the catalogues are useful and a good 
library should be accumulated. The storeroom stands 
between the shop and the purchasing agent in indus- 
trial concerns, and there are many times in which 
the storekeeper is able to help out both departments. 
A case in point was in connection with some small 
brass rivets required by the shop for a special job 
in a hurry. A requisition for 10,000 of these with 
oval heads 3/32 of an inch in diameter and 5/16 of an 
inch long was sent to the storeroom. Not being an 
article usually carried in stock, a requisition was made 
on the purchasing agent to buy them. 

After several days' fruitless work the purchasing 
agent abandoned the search for the article making 
the statement that such a size could not be obtained 
from stock and that the exigencies of the production 
department would not permit of its waiting to have 
them made. This result was reported back to the 
storeroom and it came to the attention of the assist- 
ant storekeeper, who, on referring to catalogues, found 
that escutcheon pins could be obtained in the size 
required. On reporting this to the production depart- 
ment it immediately decided these would answer the 
purpose and the difficulty was overcome. 



THE STORES DEPARTMENT 



137 



€> O 



o o 



STAR^ACK SAW BLADES AND MACHINES 

HACK SAW BLADES FOR HAND USE 



Fig. H279A 

These blades are made from the highest grade of steel according to a special 
formula. They are perfectly toothed with a patent set, scientifically designed and cor- 
reot as to width, thickness and number of teeth to the inch. 



Siie 
Inches 
fixMx.022 
7x%x.022 
8x%x.022 
9x%x.022 



teeth 
per 

Inch 

14,24 
14, 24 
14, 24 
14, 24 



Weight 

per 
Gross 
Pounds 

1% 
3 

3tf 
3H 



Price 
Gross 
7.00 
7.50 
8.00 
9.00 



Packed % gross in a pasteboard box. 



Site 
Inches 

lOxJ^x.022 
llxKx.022 
i 12x^x.025 
Il4x^x.030 



Teeth 
per 
Inch 
14, 24 
14,24 
14,24 
14. 



Weight 

Gross 
Pounds 

P 



Price 

per 

Grow 

10.00 
11.00 

12.00 
15,00 



HACK SAW BLADES FOR POWER USE 



Tig. 11279B 

12x 5^x.032 14 10 14.40 14x1x049 10 

12x Mx.032 14 13 15.00 17xlx.049 10 

12x %x,049 10 15% 18.00 17x1x066 10 

12x1 x.049 10 25 28.80 24x1x049 10 

14x Mx.032 14 14 18.00 24xlx.065 10 

14x Jix.049 10 18 21.60 ,. .. 

Inch Gauge ;;......-. , .032 

Packed in Pasteboard Box .' gross J^ 



28 


31,20 


34 


36.00 


46 


39.00 


48 


50.40 


63 


54.00 


.049 


.066 


H 


X 



CONTRACT WITH 



DATE. 



EXPIRES- 



AVERAGE MONTHLY CONSUMPTION- 



ORDERS PLACED 



Figure No. 67 
This shows method of recording contract date and consumption. 



138 



STORING 



O O 



o o 





WEIGHT OP 

WIRE 
COPPER, BRASS, IRON AND STEEL 

Diameters Determined by Brown & Sharps Gauge 




No. of grange 


Decimal equiv., 
inch 


Weight of wire per 1000 linear feet 


Wrought iron, 
pounds 


Steel, 
pounds 


Copper, 
pounds 


Brass, 
pounds 


0000 

000 

00 




.46000 
.40964 
.36480 
.32486 


560.74 
444.68 
352.66 
279.67 


566.03 
448.88 
355.99 
282.30 


641.2 
508.5 
403.3 
319.8 


605.18 
479.91 
380.67 
301.82 


1 
2 
3 
4 

5 , 


.28930 
.25763 
.22942 
.20431 
.18194 


221.79 
175.89 
139.48 
110.62 
87.720 


223.89 
177.55 
140.80 
111.66 

88.548 


253.6 
201.1 
159.5 
126.5 
100.3 


239.35 
189.82 
150.52 
119.38 
94.666 


6 
7 
8 
9 

10 


.16202 
.14428 
.12849 
.11443 
.10189 


69.565. 
55.165 
43.751 
34.699 
27.512 


70.221 

55.685 

44.164 

. 35.026 

27.772 


79.55 
63.09 
50.03 
39.68 
31.46 


75.075 
59.545 
47.219 
37.437 
29.687 


11 
12 
13 
14 
15 


.090742 
.080808 
.071961 
.064084 
.057068 


21.820 
17.304 
13.722 
10.886 
8.631 


22.026 

. 17.468 

13.851 

10.989 

8.712 


24.95 
19.79 
15.69 
12.44 
9.869 


23.549 
18.676 
14.809 
11.746 
9.315 


16 
17 
18 
19 
20 


.050820 
.045257 
. .040303 
.035890 
.031961 


6.845 
5.427 
4.304 
2.413 
2.708 


6.909 
5.478 
4.344 
3.445 
2.734 


7.827 
6.207 
4.922 
3.904 
3.096 


7.587 ' 

5.857 

4.645 

3.684 

2.920 


21 
22 
23 
24 
25 


.028462 
.025347 
.022571 
.020100 
.017900 


2.147 
1.703^ 
1.350 
1.071 
.8491 


2.167 
1.719 
1.363 
1.081 
.8571 


2,455 
1.947 
1.544 
1.224 
■ .9710 


2.317 
1.838 
1,457 
1.155 
.9163 


26" \ 

27 

28 

29 

30 


. ..01594 
.014195 
.012641 
.011257 
.010025 


.6734 
.5340 
.4235 
.3358 
.2663 


.6797 
.5391 
.4275 
.3389 
.2688 


.7700 
.6107 
.4843 
.3841 
.3046 


.7267 
.5763 
.4570 
.3624 
.2874 


31 
32 
33 
34 
35 


.008928 
.007950 
. .007080 
.006304 
.005614 


.2113 
.1675 
.1328 
.1053 
.08366 


.2132 
.1691 
.1341 
.1063 
.08445 


.2415 
.1915 
.1519 
.1205 
.09553 


.2280 
.1808 
.1434 
.1137 
.09015 


36 
37 
38" 
39 
40 


.005000 
.004453 
.003965 
.003531 
.003144 


.06625 ' 

..05255 

.04166 

.03305 

.02620 


.06687 
.05304 
.04205 
.03336 
.02644 


.07576 
.06008 
.04765 
.03778 
.02996 


• .0715 
.05671 
.04496 
.03566 
.02827 


Specific gravity 
Weight cubic foot 


7.7747 
485.874. 


7.848 
490.45 


8.900 
555.6 


8.461 
528.2 


These weights are t 
practice. 

, ; , - — — 


aeoretically coi 


Tect, but vans 


itions must 


be expected in 



Figure No. 68 
Recording information regarding weight of wire. 



THE STORES DEPARTMENT 



139 



o 


o o 

Steel Collars 


O 




With or Without Set Screws 


• 




£% 










Shaft 








Shaft 








Diam. 


List 


Diam. 


Width 


Diam. 


List 


Diam. 


Width 


Inches 


Price 


Inches 


Inches 


Inches 


Price 


Inches 


Inches 


if 


$ .60 


1% 


it 


311 


$5.50 


5H 


1% 


1ft 


.80 


2 


7 /s 


4ft 


6.00 


6ft 


17s 


1* 


.90 


2& 


it 


411 


7.25 


611 


2 


1& 


1.00 


2A 


1 


5% 


8.50 


7% 


2 


ltt 


1.25 


2U 


1 


5 7 / 8 


10.00 


7% 


2 


U* 


1.60 


3 


1% 


6% 


12.50 


8% 


2 


2& 


1.90 


3& 


1% 


67 8 


14.00 


9% 


2% 


2A 


2.40 


3H 


1% 


8 


19.50 


10% 


2% 


214 


2.70 


4% 


1% 


9 


25.00 


n% 


2% 


211 


3.00 


4ft 


1% 


10 


32.00 


1214 


2% 


&ft 


4.50 


5t 3 b 


m 












ORDERS PLACED 


. 









Figure No. 69 
Extract from catalogue with data on steel collars. 



140 



STORING 



Probably great changes will take place in the method 
of compiling and issuing catalogues in the near future. 
In fact, the change has commenced, but so little has 
yet been done that it does not carry much weight. 
There is no good reason why such a large variety of 
sizes should exist or why there should be so little 
uniformity in their compilation. Why are some 



ARTICLE OR 
MATFRIAI 




MANUFACTURER 


ADDRESS 


SECTION 


CAT. NO. 



































































































Figure No. 70 
Index card for catalogues, size 3x5 inches. 

printed with the index in the front and others with it 
in the back? Why do some have prices attached 
and others have separate price lists? 

Uniformity in these particulars would make cata- 
logues much more valuable, or at least more con- 
venient for reference. This of itself would increase 
their value, because of the greater ease in referring to 
them. A very wide movement is on foot to standard- 



THE STORES DEPARTMENT 141 

ize catalogues. The eventual outcome of this move- 
ment will probably be the adoption of the bulletin 
form of standard size, each bulletin describing one 
machine or article. This form has already been put 
in force by many manufacturers. 

The best method of filing catalogues is to group 
them according to size. Owing to the lack of uni- 



NAME OF 
MANUFACTURER 



LIST OF MATERIAL MANUFACTURED 



Figure No. 71 
Index card for catalogues under name of manufacturer. 

formity in size already alluded to, catalogue filing is 
loose, ragged, and uneconomical at best as far as space 
conditions are concerned. But until this defect is 
remedied the best that can be done is to group the 
sizes. If attempts are made to group in subjects, 
all the disadvantages named are aggravated. A good 
cross index should be kept, as indicated in Figures 
70 and 71. 



142 STORING 

Charts and Diagrams 

Some very useful charts can be kept by the store- 
keeper, especially if he is in control of all supplies. 
He can, for instance, keep a chart of cotton waste 
used showing increase or decrease in consumption, 
made by any change in the quality used. This applies 
also to lubricating oils, files, and innumerable small 
tools. Of course it is not intended to suggest the 
charting of things not worth while, but charts are much 
more illuminative than mere figures and they take 
very little time to prepare. 

Possibly these charts or diagrams might be extended 
to advantage to some of the raw materials, but this 
may be going somewhat beyond the storekeeper's 
province. Anyhow they would show beyond a ques- 
tion of doubt just when consumption was greatest 
and when it was lowest. These fluctuations are 
important, because if there are wide fluctuations 
during the course of the year in the demand for mate- 
rial the storekeeper should know it in order to specify 
the correct delivery dates in his requisition to the 
purchasing agent. 

Personnel of the Stores Department 

Only a general outline of the employees necessary 
for this work can be given, because of the great vari- 
ation in the amount of work to be done. Some very 
large concerns may have much less actual storeroom 
work than smaller concerns. This is because of the 
nature of the product manufactured. The class of 
storing which involves an enormous amount of detail 
work is that in which the product is made up of an 
infinitesimal number of small parts, many of these 



THE STORES DEPARTMENT 



143 




spunod 



144 STORING 

parts being themselves composed of more than one 
kind of material. 

Some establishments have factories or warehouses 
located in different parts of the country with a general 
storekeeper who supervises the storerooms in each 
locality, having an assistant or man in charge at each 
place. If these are not separated too widely it may 
be possible to keep the clerical records in one central 
office. This would depend to a large extent on the 
arrangements made for cost-keeping and accounting 
work. If these could be centralized, then it is quite 
possible to follow the same course with the final stages 
of the stores clerical work, that is, the perpetual in- 
ventory. 

The clerical work itself naturally varies greatly, 
because of the difference in the product as already 
stated. For instance, one concern may make 20 
deliveries from the stores, while another concern 
equally large and doing as much or more business may 
make only one delivery. The author recently in- 
vestigated the methods used in a stores where over 
70,000 items were carried in stock, while in another 
there were only about 3000, yet these two concerns 
were doing in dollars and cents practically the same 
amount of business annually. 

There are certain fundamentals in storage work 
which must be observed. It is impossible to get away 
from them if the work is to be done properly, irrespec- 
tive of the size of the concern. These will be outlined, 
but in considering these the fact should be kept con- 
stantly in the foreground that nowhere is orderliness, 
system, and cleanliness more essential than in the 
storeroom. Some shops may get through a vast 



THE STORES DEPARTMENT 



145 





Q*— 




»— z 


O 


JISITION 
CH'G AGE 




cyoc 




u3r> 




oco- 




, 


D£ 




vDUJ 




2S 




— Od 




</>o 


Z 


< 




into 




o»— 




<*?; 









-a 


o£ 


LUO 


|__UJ 


-=c> 


^-ixi 


sa 


ujcx: 1 


Z J 




146 STORING 

amount of work with very untidy conditions, and the 
output may not suffer from this condition, but not 
so in the storeroom. Damage, deterioration, and 
irregularities, involving losses which can only be 
estimated, will occur if the storeroom is not kept 
clean and orderly. There should be a place for every- 
thing and everything in its place. To accomplish 
this one must have assistants who are themselves 
clean and orderly. They must be methodical, but 
at the same time alert. The storeroom is too often 
looked upon as a lounging place. Some workmen 
and messengers like to go there for material, because 
of the opportunity it offers for loafing for a few min- 
utes. The storeroom help can largely obviate this 
by promptness in filling their requirements. 

Outline of Work 

In subsequent chapters it is proposed to discuss 
in detail all features of the routine work of a store- 
room. For a comprehensive appreciation of what this 
work covers the reader is referred to the accompany- 
ing diagram (Figure 73). In explanation of this the 
main features are enumerated as follows: 

1. When any material arrives some form of receipt 

must be given for it and some form of record 
must be made of its arrival in the establishment. 

2. There must be some form of inspection and 

examination. Goods may be received in 
packages or some form of container and an 
acknowledgment given for the receipt of so 
many packages, but later the contents must 
be scrutinized and checked with the shipper's 
statement. 



THE STORES DEPARTMENT 147 

3. The goods must be passed along to their ultimate 

destination. This may be a separate ware- 
house, or it may be the storeroom adjacent 
to the receiving room, or the material may 
pass directly into the shop for immediate 
use in production work. 

4. The goods must be placed on shelves or racks 

or in bins, drawers, or other receptacles in 
the respective places already assigned to 
them. 

5. Proper entries must be immediately posted on 

the stores records of the receipt and dis- 
position of the goods. 

6. Requisitions will come in for the withdrawal 

of material from stores; these must be exam- 
ined for authenticity and accuracy. 

7. If the material is in the stores, it must be de- 

livered promptly and in good order. 

8. Proper entries must be made immediately on 

the perpetual inventory of the withdrawal 
from the stores. 

9. Requisitions should be sent promptly to the 

purchasing agent, with instructions to buy 
such material as may be required, but which 
is not ordinarily kept in the stores. 
10. Requisitions should be sent to the purchasing 
agent daily, with instructions to buy regular 
stores material, which on account of the 
withdrawals has passed the minimum point 
which has been predetermined. 



CHAPTER X 
Receiving Material 

The Delivery Point 

EVERY order placed for material should specify 
a place of delivery. If goods are bought lo- 
cally the seller may deliver at the buyer's warehouse, 
factory, or place of business, or the sale may have 
been f. o. b. the seller's warehouse. In the latter 
case the buyer must arrange to get the goods to their 
ultimate destination. In the case of material pur- 
chased from a seller located at some distance from the 
buyer's place of business the delivery point may be 
either f. o. b. point of shipment or f. o. b. destination. 

There are other variations in stipulating delivery 
points; but wherever this point may be, it is the 
place where ownership of the material passes from 
the seller to the buyer. The seller, therefore, has 
fulfilled his part of the contract by delivering the 
material to the transportation company at the point 
named. This point may be several hundred miles 
from the buyer's place of business, and if the material 
should be lost or damaged in transit subsequent to the 
delivery being made, the buyer would, nevertheless, 
have to pay for it. 

Questions regarding delivery do not usually come 
within the scope of the storekeeper's work, but occa- 
sionally the regulations of an organization call for the 
storekeeper to take charge of material at the delivery 



RECEIVING MATERIAL 149 

point and get it transported to its final destination. 
It is necessary, therefore, to make some reference to 
these questions. The principal fact to be borne in 
mind is that the delivery point specified is the place 
at which ownership passes to the buyer, and that any 
transportation or trucking company receiving mate- 
rial at that point simply acts as agent for the owner. 

Tracing Shipments 

In Chapters Two and Three storeroom economics 
were discussed from many angles, and many of the 
factors outlined in that discussion apply equally to 
material, whether in transit or in the stores. These 
points should be given due consideration and the 
material followed up closely to avoid delays. In the 
case of local deliveries it may be found advisable to 
have one's own trucking system, or arrangements 
must be made to have the sellers deliver the goods to 
some reliable local expressman. When the deliveries 
are made to railroad, steamship, or express companies 
it is imperative for the man who is going to follow up 
the goods to have documentary evidence of shipment, 
that is, a bill of lading or express receipt. In case 
of delays these are needed, because the particulars 
on these documents must be quoted when making 
inquiries. 

In all work connected with tracing shipments dis- 
crimination should be used. There are too many 
requests made on the transportation companies to 
trace shipments, and if no discretion is used in making 
the requests they will be disregarded. Some buyers 
will insert a clause on all orders reading "Ship and 
trace," and insist on a tracer being put on all shipments 



150 STORING 

as soon as they are made. This is not good practice, for 
a sufficient amount of time should be allowed to elapse 
to permit material to reach destination, and if it does 
not show up promptly a tracer should then be started. 

Getting Delivery 

Securing delivery of material or "following up" 
an order, as it is generally termed, is work that usually 
comes within the purchasing routine, but there are 
cases where a storekeeper may have to take care of 
following-up orders placed for the storeroom. In 
a manufacturing plant the production department 
looks to the storeroom to supply its needs, and the 
storeroom looks to the purchasing agent to buy what 
it requires and usually to get delivery, but in the 
case of an establishment having several factories in 
different parts of the country, with a central purchas- 
ing department, considerable time is consumed if the 
storekeeper in a far distant factory applies to the 
purchasing agent for information regarding delivery. 
He can do this himself in certain instances, particu- 
larly in those cases where the supplier is located nearer 
to the factory than to the purchasing agent's office. 

It is exceedingly difficult to get satisfactory results 
with follow-up work, because the shippers are lavish 
with promises and tardy in performances. Promises 
are intangible at best, although some concerns, jeal- 
ous of their reputations, will strictly live up to them. 
This, however, is the exception and not the rule. 
Because one has a promise of shipment one cannot 
sit back at ease. These promises must be converted 
into performances and the material obtained when it 
is needed. 



RECEIVING MATERIAL 



151 



fOflM 6S4 (REV. 5-5-18) 

Follow Up on Material Orders 

TO DATE 








PI-EASE ADVISE BELOW WHEN 
YOU WILL. SHIP MATERIAL. 
SPECIFIED ON OUR ORDER * 

DATE 


OUR NO 


YOUR 1Mb 


SHOP NO 


















Otis Elevator Company 

office 




Reply (do not detach from above) 

DATE 


THE ABOVE ORDER SHIPPED 






FROM VIA 


REMARKS: 








SIGNED 






. 



Figure No. 74 
Form for requesting information regarding shipment of material. 



152 STORING 

Following up an order means that the intent and 
purpose of the order must be followed to their logical 
conclusion by the delivery of the goods. The store- 
keeper should be furnished with a copy of the pur- 
chasing agent's order, which should specify the time 
and place of delivery. There are two ways in which 
the storekeeper can handle these copies of orders. 
He can keep them in numerical sequence or segregate 
them under the dates on which deliveries are required, 
or are to be made. For instance, if he has some orders 
which call for delivery on the 20th of the month, 
he should place these in a folder or pigeon hole for 
attention a week to ten days in advance of that date. 
Possibly some orders may need more time than this. 
The main thing is to get some assurance of as positive 
a nature as possible as to shipment. A form can be 
used similar to Figure 74 for the preliminary inquiry. 
If this fails to bring the desired answer it can be fol- 
lowed by a similar form stamped "Second request, 
please answer." If the material is very urgently 
needed a courteously worded letter may be substituted 
for the second inquiry form; if a third inquiry is 
necessary it should always be used. 

If the routine outlined is followed with discretion 
and useless and trivial inquiries eliminated, good re- 
sults can usually be obtained. There are exceptional 
cases, however, which require exceptional treatment. 
In the recent strenuous times many large concerns 
have found it necessary to keep several men out 
traveling to the seller's factories to follow up orders 
and secure delivery. Some concerns are very free 
with promises, but give little regard to living up to 
them. The writer has before him now four letters 



RECEIVING MATERIAL 153 

from a large manufacturing concern and signed by an 
officer of the company giving the most definite assur- 
ances regarding shipment of material. These letters 
are dated about ten days apart, all refer to the same 
material, all are facile and easy in style, and all name 
a different shipping date, which is usually specified 



Date 

Mr. 


191 __ 


Your requisition fiumher 


has arrived. Material is now in the storehouse. 




G. Par. 11-5M 3-18. C.P.Co. 


Storekeeper.. 



Figure No. 75 
Form for notifying departments that material has arrived. 

as two or three days subsequent to the date of the 
letter. None of these promises were kept and in such 
cases some other source of supply must be found. 

Receiving Material at Destination 

All materials and articles on arrival at the pur- 
chaser's place of business must have a record made of 
their arrival. They must undergo some form of in- 
spection or examination, and must be passed along 
to their temporary resting place in the storeroom or to 
the place where they are to be utilized for production 
work or otherwise, as the case may be. 



154 



STORING 




RECEIVING MATERIAL 155 

In some small establishments it may be found ad- 
visable to receive and inspect incoming material in 
the storeroom or in connection with the shipping room. 
Some concerns may have a separate receiving room, 
but have the inspection done in the storeroom. There 
is this fact to be considered, that many goods and par- 
ticularly small articles are in some form of package 
or container, and the person receiving these can only 
record the receipt of so many barrels, boxes, bags, 
and so on as the case may be, unless they are opened 
and the contents counted, weighed, or measured, as 
might be necessary. In those establishments where 
the movement of goods is frequent enough to warrant 
it, it is certainly preferable to separate the activities 
of receiving, inspecting, and storing. Even in small 
establishments, if such work is all done by one man, 
the three functions are separated and distinct and will 
be discussed in that manner. 

Owing principally to differences in accounting 
methods, some receiving clerks report to the account- 
ant's office and others to the purchasing department. 
It is better for them to be independent of any depart- 
ment, because their work brings them into contact 
with the stores, purchasing, and accounting depart- 
ments, and it is desirable not to have their movements 
controlled by any one of these departments. They 
can then serve them all with equal fairness. 

The receiving clerk should be advised of what 
goods are coming in. The best way to accomplish 
this is to furnish him with a copy of all orders issued. 
It is contended by some persons that if the receiving 
clerk did not have this information he would more 
carefully check incoming material, but it is not good 



156 STORING 

policy to keep him in ignorance on this point, because 
he might receive material in excess of the quantity 
ordered or material not ordered at all, or which had 
been cancelled. When such occurrences do happen 
it necessitates referring the matter back to the shipper. 
This frequently results in long negotiations and in- 
volves expense in returning the materials, besides the 
inconvenience and disorganization entailed in making 
the adjustment. In those establishments formed on 
departmental lines it is essential for the receiving clerk 
to know to which department the material belongs, if 
it does not go directly into the storeroom. 

It is, of course, essential for the receiving clerk 
to make some form of return either to the purchasing 
or accounting department to enable them to pass the 
invoices. There are several methods in vogue for 
doing this. One scheme is to give the receiving clerk 
a copy of each requisition sent to the purchasing agent. 
After the order is placed by the purchasing department 
it notes on the receiving clerk's copy of the requisition 
the name of the seller and the order number, but not 
the price, as it is not necessary for him to know this. 
The copy given to him bears on the reverse side a form 
for recording receipt of the material (see Figure 77). 
This receipt, when properly filled in, is returned to the 
purchasing or accounting department and attached to 
the invoice. This scheme has one big defect. Quite 
often the material specified on a requisition is ordered 
from more than one concern, or if ordered from one 
concern is sometimes delivered in several installments. 
There are some establishments, however, where it is 
used with success, but it cannot be recommended unless 
the material comes in in one shipment. 



RECEIVING MATERIAL 



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STORING 



NOTICE! A DETAILED REPORT OF THE GOODS MENTIONED ON THE.OPPOSITE SIDE OF THIS 
SHEET MUST BE MADE IN THE SPACE BELOW. PARTIAL RECEIPTS SHOULD BE REPORTED ON 
FORM 423. 



QUANTITY 



F -°'fj FREIGHT CHARGED TO CLASS AMOUNT 



o 
o 



o 
o 



RECEIVED BY. 



APPROVED. 
APPROVAL MUST BE BY MSB, OB SUPT. OR ONE DULY AUTHORIZED. 



Figure No. 78 
Reverse side of copy of order for recording receipt of material. 



RECEIVING MATERIAL 



159 



Another scheme is to furnish the receiving clerk 
with a copy of the purchase order to be used in a 
similar manner to the requisition described in the 
preceding paragraph. This also bears a form of 



FORM 429 

RECD 


1» 


FROM 




1 - 


QUANTITY 


MATERIAL 


Purchase 
Order No 
































RECEIVING CLERK 






' QUALITY 


FOB 


QUANTITY 


FREIGHT 


PRICE 


MFG NO 


EXTENSIONS 


REQ NO 


JOB NO 


CHARGE TO 


Class 


AMOUNT 


































































APPROVED TOTAL 















Figure No. 79 
Supplementary form to Figure 78 for recording partial receipts. 

receipt on the reverse side, as illustrated in Figure 
78. This suffers from the same defect noted in re- 
gard to the requisition. There is, however, a point 
about this scheme worth consideration. The pur- 



160 STORING 

chase orders issued by a concern constitute a lot of 
floating obligations, and some establishments find it 
necessary to keep track of these and to have a reliable 
record as to when they are closed. This is effected 
by the accounting department, which receives a copy 
of the purchase order, and also obtains from the 
receiving clerk his copy when the receipt on the back 
is filled in. This method gives the accountant infor- 
mation as to all purchase obligations and he knows 
from the receiving clerk's copy when each obligation 
is closed. If an order should be delivered in install- 
ments it is necessary to use a supplementary form, 
as shown in Figure 79, for all deliveries except the 
last one. It is only when delivery is complete that 
the receiving clerk surrenders his copy of the order. 

The use of either scheme outlined means some 
duplication of work for the receiving clerk, because 
he must make a record of incoming material anyhow, 
and this record can be made in duplicate, one copy 
going to the purchasing or accounting department for 
the purpose of checking invoices. 

The system which is recommended for recording 
receipt of material is indicated in Figure 80. This 
form should be in triplicate and each delivery recorded 
on a separate sheet. The three copies are disposed 
of as follows. One is kept by the receiving clerk and 
filed in numerical sequence, which should also be the 
order of dating. The latter is important, because 
questions are frequently asked regarding receipt of 
material and it is generally the date which is given 
as a reference. The second copy goes to the pur- 
chasing department and serves as a notification of 
the delivery of material. Later it can be attached 



RECEIVING MATERIAL 



161 



RECEIVED ON ACCOUNT OF ORDER NO. 



DATE 



FROM 



F.O.B. POINT 



FRT. CHARGES 



QUANTITY 



DESCRIPTION OF MATERIAL 



RECEIVING CLERK 



INSPECTION REPORT 



RECEIVED INTO STORES 



SIGNED- 



STOREKEEPER 



CHECKED WITH INVOICE 



_ SIGNED- 



INVOICE CLERK 



Figure No. 80 
Receiving report in triplicate. 



162 



STORING 



to the invoice. If this is strictly followed no invoice 
could ever be paid twice, neither could an invoice be 







SHIPMENTS 






DATE 


QUANTITY ' 


CAB No. 


INITIAL 


DATE 


QUANTITY 


CAR No. 


INITIAL 






































1 














1 














_u 














































1 














r 











































DATE 






RECORD OF CORRESPONDENCE 




























ACKNOWL- 
EDGED 


PROMISED 


DATE 

SHIPPED 


CAR NO. - 


"\ 


JOB No. 


ORDER No. 


BRANCH OR CUSTOMERS 
ORDER No. 



Q 



Figure No. 81 
Reverse side of order, used for recording shipments and correspondence. 

paid for material not received. The third copy 
follows the material to the inspector, the storeroom, 
or other department, as the case may be. 



RECEIVING MATERIAL 163 

If material on arrival is found not to be in accord- 
ance with the purchase order, it should be immediately- 
reported to the purchasing department, so that it may- 
take the matter up with the shipper promptly. All 
reports of incoming material should always be sent 
to the purchasing department and other interested 
departments promptly, because one of them may be 
following up delivery and it is essential for them to 
have the advice of its arrival as quickly as possible. 
All freight or express charges should without fail be 
noted on all receiving reports. This is important 
because when the invoice is checked it is necessary 
to know whether such charges are in accordance 
with the terms of purchase. 



CHAPTER XI 

Placing and Locating Material in the 
Storeroom 

Inspection and Examination 

ALL articles and materials received into an estab- 
lishment must necessarily pass some kind of 
inspection. For instance, if a keg of nuts is received 
and the receiving clerk checks the weight and finds it 
correct, still there must be some sort of examination 
so that one may know that the nuts are the right size 
with the right thread and that they conform to the 
order in all respects, that is, if cold punched nuts are 
ordered one does not want to receive hot pressed nuts. 

Some forms of inspection need be only very casual; 
that is, one can tell by a glance whether material of 
certain kinds is all right. Other material needs very 
careful examination; it may need to be measured or 
gauged, or both, or put to some simple tests. Still 
other material may have to be rigidly tested with some 
physical testing machine, or may have to pass a chemi- 
cal analysis. When material is to undergo these forms 
of testing the purchase order should specify in what 
manner they are to be done, or the results which must 
be obtained from the tests. 

Another form of inspection is that which takes 
place at the seller's place of business. This may be 
done during the manufacturing process, or when fin- 
ished, but prior to shipment; or the seller may make 



INSPECTING AND PLACING MATERIAL 165 

and submit a sample before proceeding to manufacture 
the bulk of the order. When such a sample is ap- 
proved it should be properly identified with the order 
and turned over to the inspector who is to examine 
the material on arrival so that he can make exact 
comparisons with the bulk. The need of inspection 
is not fully realized by many concerns; it is too often 
the weakest link in the chain of activities connected 
with receiving and storing material. 

Inspection before Delivery 

Some large concerns have men on their permanent 
staff who are sent to the seller's factory or place of 
business to inspect material while it is going through 
the manufacturing process or when it is completed 
ready for shipment. In the latter case they may have 
to see it loaded on to cars. He should make his report 
in some such manner as indicated in Figure 82. This 
method of inspection is largely adopted in all im- 
portant contracts for material which it is essential 
should be uniform in its characteristics. It should 
also always be done in those cases where payment 
has to be made before it could be inspected on arrival 
at destination, or when it has to be transported very 
long distances. A concern not having men on its 
staff fitted for this kind of work can always secure 
the services of a reputable firm of inspecting engineers 
to undertake this work. 

Inspection after Delivery 

The manner in which this can best be done will 
depend largely on the way the work is allocated in 
the establishment. It can be done by the receiving 
clerk, if he has the time and the necessary ability; 



166 STORING 



INSPECTION REPORT 



DATE MATERIAL WAS 
ORDER NO DATE OF ORDER READY FOR INSPECTION. 



PURCHASED FROM- 
MATERIAL 



PLACE OF INSPECTION- 



DATE OF INSPECTION DATE REPORT SENT IN. 



DETAILS OF INSPECTION AND TESTS 



SIGNED- 



COPIES OF THIS 

REPORT SENT TO REPORT APPROVED BY 



Figure No. 82 
Form used by inspectors for making reports. 



INSPECTING AND PLACING MATERIAL 167 

it can be done by a member of the stores department, 
or there can be an inspection department independent 
of either. In any case it should be done promptly 
after the material arrives, because if in any particular 
the material should be found faulty the seller should 
be advised without delay. Another reason why inspec- 
tion should not be postponed is that if a sudden call 
were made for the material for use in the shop and it 
was found to be incorrect, it would disorganize the 
routine and probably involve considerable expense in 
making hurried purchases of the right material. 

The inspection referred to in the last paragraph 
means the examination for any defects, except those 
which it is necessary to prove through a chemical 
analysis, or those which are carried out by the tech- 
nical staff. Any competent man accustomed to hand- 
ling material can, with the exercise of care, discover 
superficial flaws and poor finish, or whether the 
material has suffered from exposure to atmospheric 
conditions, or from poor packing or rough handling. 
He can also detect irregularity in the size of small 
articles and can make measurements with the use of 
simple instruments such as gauges, calipers and mi- 
chrometers. It is such inspection as this that is re- 
ferred to here. The record of this inspection can be 
made on the form illustrated in the last chapter (Figure 
80). 

Inspection which calls for complicated physical 
tests or chemical analysis must be undertaken by 
some firm of inspecting engineers, if an establishment 
does not have the apparatus and staff to do such work 
itself. In these cases samples for testing purposes 
must be taken from incoming material and be prop- 



168 STORING 

erly marked or tagged with the order number. They 
should then be sent promptly for testing, accompanied 
by a form similar to Figure 83. This can be in 
triplicate or quadruplicate, as may be necessary. 
The purchasing, technical, and stores departments 
would probably each require a copy. 

Receiving Material into Storeroom 

During the preceding discussion we have followed 
the course of the material to a point where it is ready 
to pass into the stores or directly into the shop. It is 
of the utmost importance to efficient storeskeeping 
that all articles and material be placed in the recep- 
tacles assigned to them. If this is not done it is 
exceedingly difficult to keep the records accurate; 
material will get piled up until some more favorable 
opportunity presents itself for disposing of it. This 
means that it may get damaged or mixed with other 
sizes. If material is allowed to lie around the entrance 
to the stores, it is not unlikely that when deliveries are 
being made the material will be taken from there 
instead of from the regular bin or location. Such 
methods can only lead to confusion and inaccuracies. 

It has been emphasized in earlier chapters that all 
manual operations must be maintained at an equal 
degree of efficiency with the clerical operations. The 
dual nature of storeroom work requires this. Any 
form of carelessness will lead to mistakes in manual 
work and probably the most common form is that of 
permitting delays to occur before placing articles in 
the locations assigned to them. When material is 
taken out of the bins delays will not be tolerated, 
because it is usually wanted at once and probably 



INSPECTING AND PLACING MATERIAL 169 



REPORT OF TEST 



PURCHASE ORDER NO.- 



DATE_ 



NOTE: REFER TO PURCHASE ORDER OR SPECIFICATION FOR NATURE OF TEST 
THE MATERIAL LISTED BELOW IS SUBMITTED FOR TESTING PURPOSES 



SIGN ED- 



STOREKEEPER 



Date Received Quantity 



RESULT OF TEST 



COPIES TO 



8IGNED- 



DATE TEST WAS MADE. 



Figure No. 83 
Form for reporting results of physical or chemical tests. 



170 STORING 

there is a messenger or runner waiting for it. Likewise, 
there should be no delays in placing it in the bins. 

Placing Material in Receptacles 

The most important rule to follow is to have a place 
for everything and keep everything in its place. These 
places should be properly numbered and the contents 
designated. That is, every article in the stores should 
have an address and this address should be entered 
in the stores ledger just as rigidly as if it were the 
address of a customer in the sales ledger. It should 
be possible for a person unacquainted with the store- 
room to obtain the location of an article from the 
perpetual inventory, and then be able to go directly 
to that location without hesitation. 

All shelves, racks, bins, or other receptacles should 
be numbered and all tiers or sections lettered or num- 
bered. Metal flags can be used to good effect, particu- 
larly in numbering the sections or tiers. In addition 
there should be a card holder on each receptacle 
containing a card bearing the name of the article. 
No matter what the article may be, it has a name, 
a size, a weight or some distinguishing characteristics, 
and these should be inscribed on the card correspond- 
ing with the description in the perpetual inventory. 
The practice of taking small articles into the stores, 
approaching the bins where they are supposed to go, 
extracting one of its contents, matching it up with the 
new articles, and, if apparently found to correspond, 
dumping the new lot in with the old, cannot be too 
strongly condemned. The written description of the 
incoming material should be checked with the written 
description on the bin ticket. 



INSPECTING AND PLACING MATERIAL 171 



Material Returned to Stores 

If for any reason it is found necessary to return 
material to the storeroom it must follow the same 
course of procedure as new material. That is, it must 
be accompanied by some document and must be placed 
at once in the proper receptacles. 



date- 



credit REQUISITION 

Credit is Requested for the Material Listed Below 

Credit to Apply on Order No.- 



Quantity 



Material 



From Dep't No- 
Delivered by 



Foreman 

Received by_ 



FlGTJRE No. 84 

Form for use when material is returned to storeroom. 

It is principally in manufacturing establishments 
that it is found necessary to return material to the 
stores, the reasons being that after completing an or- 
der the shop may find it has a surplus, or it may have 
been decided to curtail the quantity being made. 
In all instances of this kind the material should not 
be allowed to remain in tne shop, but should be re- 
turned to the stores accompanied by a form similar 
to Figure 84. The use of this form insures the 



172 



STORING 



transaction being posted on the perpetual inventory, 
and also provides for proper credit being given to the 
shop order. If there are any supplies in the shop in 
excess of requirements these should also be returned. 
It is only, however, when supplies are withdrawn by 
irresponsible persons that more is taken out than is 
actually needed and this should not be permitted. 



MEMORANDUM OF SCRAP SENT TO STOREROOM 

To the Storekeeper Date 

The Scrap Listed Below is Being Sent to You 
Credit Should be Given to Dep'T No Order No. 



Quantity 



Description 



Delivered by- 



Received into Storeroom- 



storekeeper 



Figure No. 85 
This form should accompany all scrap sent to storeroom. 

Scrap Sent to the Storeroom 

In some manufacturing plants scrap is quite an 
important item and if it has to be kept for any length 
of time for utilization in the plant, or if it has to be 
sold, it should be put in charge of the storekeeper so 
that it may go on his records. Some scrap has con- 
siderable value, and it may have to be kept some time 



INSPECTING AND PLACING MATERIAL 173 

until a suitable market is found. The practice of 
sending scrap to the shipping room is not to be com- 
mended, unless it is already sold and is to be shipped 
immediately. 

The rule to follow is to insist on all material in 
an establishment being on the stores records, except 
that which is in process of manipulation in the shop. 
This gives the stores accounts a definite meaning. 
Obsolete material comes under the same regulations 
as scrap, for it is virtually scrap as far as that partic- 
ular plant is concerned. It is possible that the store- 
keeper might be charged with the sale of scrap, but 
preferably it should be the purchasing agent, as he is 
in closer touch with the markets. If the latter is the 
case, the storekeeper should advise him from time to 
time of the amount of scrap he has on hand for dis- 
posal on a form similar to Figure 86. 

Storing Stationery 

While in some establishments it may not be feas- 
ible for the general storekeeper to have charge of the 
stock of stationery, still there are many places where 
it could be done to great advantage. There is, per- 
haps, more waste with stationery than with any other 
form of supplies, and a great many houses keep no 
records whatever of stationery stock, but it is handed 
out on a verbal request from a cupboard or closet to 
which many people have access. 

In many cases it would be found that very important 
savings could be effected by enforcing a rigid control, 
and if possible this control should be placed in the 
hands of the general storekeeper. He should have 
charge of everything, including all forms, ink, pens, 



174 



STORING 









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INSPECTING AND PLACING MATERIAL 175 

pencils, carbon paper, desk pads, paper fasteners, 
etc. Office furniture should be standardized and 
given form numbers. Form numbers should also 
be given to inkstands, paper fasteners, pencils, etc. 
This is essential for identification, and the standard- 
ization greatly reduces the number of varieties in use. 
If the storekeeper has charge of the stationery 
he would have to make requisitions to purchase fresh 
supplies, and to enable him to do this intelligently 
he should keep a copy of every printed form used. 
These should be pasted on loose leaves and fastened 
in a binder. The loose leaves should be large enough 
to enable the name and number of the form to be 
placed at the top of the page, with detailed instruc- 
tions for its use at the bottom. A record such as this 
is extremely valuable, because it eliminates useless 
forms and prevents duplication. It also is very 
useful for the education of new employees in the 
proper use of forms they come in contact with. A 
duplicate can be made for use in the purchasing de- 
partment as a help in buying. Very little work is 
involved in keeping such a record up to date, and its 
usefulness will amply repay the small amount of labor 
entailed in compiling it. 

Storing Finished Product 

The preceding discussion has been confined to raw 
material and supplies, but there is another class of 
material which has to be stored and that is the fin- 
ished parts or finished product of a plant. In some 
establishments these are kept in storerooms entirely 
separate from the raw material, while in others they 
may be stored in the same or adjacent rooms. Practi- 



176 STORING 

cally every consideration from an economic viewpoint 
which applies to raw material, as discussed in Chapters 
Two and Three, applies equally to finished product. 

The only difference between raw and finished mate- 
rial is in regard to the manner in which it should be 
handled or the location it should occupy. Finished 
material may be the product of a factory, such as 
screws or nails in regulation packages ready for ship- 
ment, or it may be completely assembled articles, 
such as desks, or typewriters, or again it may consist 
of materials which, together with other material, 
will ultimately be assembled to make a complete 
machine, such as an automobile or bicycle. The last 
class of finished material is usually designated "finished 
parts." 

As far as storage problems are concerned there is 
no radical difference on either the manual or clerical 
work connected with storing raw or finished material. 
They must both have their entry and exit properly 
recorded and in a similar manner. There would in 
some instances be a saving in this work if all classes 
of stores could be under the same control, with the 
storerooms contiguous to each other. It should, 
however, be recognized that finished material may 
travel a different route, both in going in and out of 
the storeroom, and this must be considered in decid- 
ing on the location. Of course some factories send 
all finished parts to the assembling departments, 
but even so they have to be stored there until gathered 
together to form the complete articles or machine. 



CHAPTER XII 

Deliveries from Storeroom 

General Considerations 

IT is usually important that material and supplies 
be distributed promptly by the helpers in the 
stores, particularly in manufacturing plants. The 
facility with which this is done will depend very largely 
on the manner in which the material has been placed 
in the racks and bins. Deliveries can be made easily 
and rapidly from a well-kept and well-arranged stock. 

In the majority of storerooms the deliveries are 
much more numerous than the receipts. With the 
larger number of operations there is naturally more 
liability to make mistakes. The applicants for mate- 
rial must be served accurately and expeditiously 
and the transactions must be posted promptly on the 
records to enable close track to be kept of the stock. 
All these features render the problems connected 
with deliveries the most important in storeroom 
activities. In consequence of this the assistants mak- 
ing deliveries must be thoroughly conversant with the 
stock and be able to supply applicants without delay. 
They should be able to scrutinize requisitions and 
decide quickly whether they contain all the requisite 
information and are signed by a person duly author- 
ized to draw material from the stores. 

In the case of material required for production 
work there is, or should be, complete control over it 



178 STORING 

after it passes out of the storeroom into the shop, 
and any waste or withdrawals in excess of require- 
ments should be quickly discovered. It is more 
difficult to control supplies, because these are not 
charged directly to a production order and, their 
use being more general, it is open to persons without 
a sense of responsibility to withdraw more than is 
needed. In connection with these it is essential there 



STORE ROOM ORDER 
H. W. JOHNS-MANVILLE CO. 

MANVIIXB PLANT 

DATE - - 


mtf JVKR TO BEARER 




































TO RR TTSRT> ON 




r 


TOTAL 








El7-2$8-2S Foreman 



Figure No. 87 
Requisition on storeroom. 

should be some supervision, and it has been suggested 
in an earlier chapter that the chief storekeeper could 
well be given the authority to regulate the use of 
supplies. Prevention of overdrafts is much better 
than attempts to rectify them after being made. 

Requisitions 

Applicants for material should never be permitted 
within the storeroom. The practice of allowing them 
to pick out from the stock what they need is entirely 



DELIVERIES FROM STOREROOM 



179 



too common. Many storekeepers compromise by per- 
mitting applicants to go to the shelves and get what 
they need, checking the weight or count as the appli- 
cant passes out of the storeroom. Such methods as 
this should not be tolerated. If a storeroom is main- 
tained, then it should be operated in the right way. 





WARNER SUGAR REFINING CO. 

RECEIPT 






A 22389 


Rewrite dumber I 

1 Date 191 




deceived from Storekeeper the f ol!owing> 




OUANTITV 


size - no. 


ARTICLES 


JOB 


VALUE 






























































































■ 




1 










. 



Figure No. 88 
Requisition on storeroom. 

If a loose system prevails, either in receiving or de- 
livering material, the storeroom records cannot be 
considered reliable. 

The requisition presented to the storekeeper may 
take any convenient form, but it must contain certain 
essential features. These are: 

1. The date; this may be stamped on the requisition 

when received if it has not already been inserted. 

2. The name or number of the department from 

which it originated. 



180 STORING 

3. An explicit and unmistakable description of the 

material required. 

4. For what purpose it is required. 

5. It must be signed by a person duly authorized 

to draw material from the stores. 

There are other features which may be necessary 
in individual cases; these will be governed mainly 
by accounting and cost-keeping methods. It is pref- 
erable, although not imperative, to have a distinguish- 
ing color for the requisitions from each department. 
This is of great assistance in segregating and filing. 
It is also advisable to number requisitions, as they can 
then be located readily whenever it is necessary to 
refer to them. Figure 89 illustrates a form of requi- 
sition for use in a manufacturing plant. After these 
have been duly entered on the stores records, it is 
customary for them to pass along to the cost account- 
ant, who makes the proper charges from them against 
the shop orders. It is possible, therefore, that the 
cost accountant might wish the requisitions to be 
uniform with other documents used in this work. 

Requisitions should correspond to the perpetual 
inventory in specifying quantities. For instance, if 
the inventory is kept in units of weight and the requi- 
sition asks for a certain number of the articles, it 
must be converted into units of weight before the 
articles leave the stores. The bin ticket should in- 
dicate in what manner the unit is expressed. 

Issuing Articles in Sets 

There are a great many things manufactured which 
require certain fittings when being assembled. For 
instance, nearly all furniture comes under this cate- 



DELIVERIES FROM STOREROOM 



181 



gory. If an order is started in the shop to make up 
one hundred office desks, it is not necessary to with- 



FORM Y SB 



MATERIAL REQUISITION 



ORDER NO. 



.REQUISITION NO. 



TO OE»»T NO. 



.DELIVER WITH THIS ORDERTO DERTNO. 



TO aE USED FOR 



SEC 


BIN 


SAL. 


































































































. FOREMAN 



Figure No. 89 
Storeroom requisition. 



draw the hardware from the stores at the same time as 
the lumber. For this reason the storekeeper should 



182 STORING 

know what orders are going through the shop, so that 
he may be prepared to supply what is needed when 
it is needed. 

The lumber for the desks having passed through 
the manufacturing stages up to the point where it is 
assembled, a requisition can then be made for the 
hardware. In writing this up it is not necessary 
to specify so many locks, drawer pulls, casters, etc. 
The requisition should call for 100 sets of fittings for 
standard desk number — . Before the messenger goes 
to the storeroom for them, telephone instructions 
should be given to get the sets ready, so that there 
will be no delay in delivery. In all cases of this nature 
the storekeeper should know what constitutes a set 
and he can if advisable keep his stock in sets, instead 
of having the articles separate and perhaps distributed 
widely through the storeroom. 

Shop Orders as Requisitions 

Figure 90 illustrates another method of requisi- 
tioning material from stores. This is a copy of the 
shop order and specifies the material which will be 
required in executing the order. It is particularly 
useful in jobbing work and can also be used when the 
material can all be withdrawn at one time. Manu- 
facturing methods are so varied and so many problems 
are met with which are largely individual that no 
fixed rules can be laid down in a treatise of this char- 
acter. The point which it is desired to emphasize 
is that material should not be drawn from the stores 
until actually needed for shipment, or, if it is to 
undergo manipulation in the shop, then it should go 
directly from the storeroom to the work bench or 



DELIVERIES FROM STOREROOM 



Board No. O 

Card No. Total Cards S. O. No. 

Date Dept No. Cat. No. 

Dwg.No. 

Tbi»Card calls for the Stock item following: 



Mk. 



Material . 



Schedule for. 



Fattern No. 

_, ..ifl Dept. Checked in DepL. 



'Board No. 
Card No. Total Cards S. O. No. 

Date Dept. WO. Cat No. 

Dwg.No. Mk. 

This card identifies materia! or parts attached as the following: 



Material 
Stock condition 
Steak to be delivered 
File date 



Pattern No. 
Deliver to „ 



-in office Checked in Dept.. 



Beard No. -/ 

Order Card Ho. TsUl Cerdj S. O. No. 

Mstei'ia! Cud No. Tetal Caret c*^ No. 

Date Dwg.No. Mk, 

Store To Dept. No. Delivery Date 



AidS. 



Description 



I Wrii^t ] Prica | Vttl«« 



Fffiadb? 



Chi*., 



183 



Figure No. 90 
The last section of this is used for withdrawing material from stores. 



184 STORING 

machine, and not be withdrawn and permitted to lie 
around the shop. 

To prevent the last-named condition when the rate 
of progress of an order through the shop is somewhat 
uncertain, and at the same time to prevent delays in 
delivering from the storeroom, many storekeepers lay 
out the material specified on the shop order and place 
it in tote boxes. These boxes are kept in a section of 
the storeroom with the order number marked on them. 
By adopting this course the material is retained under 
the storekeeper's control until ready for use, and at 
the same time no delay would occur in delivering it 
from the storeroom. 

Shortages 

Throughout the preceding discussion of deliveries 
from stores it has been assumed that the storeroom had 
the material ready to hand out at any moment, but 
many instances occur in which delivery cannot be 
made at once or can be made only in part. Owing 
to the difficulties experienced in getting material from 
shippers in the recent strenuous times many store- 
rooms have run short of regular stock. In the case of 
jobbing orders which may call for various odd lots 
of material and articles seldom called for, it is not to 
be supposed that they can all be carried in an ordinary 
storeroom. 

When a shortage exists the storekeeper can furnish 
such material as he has on hand and issue a shortage 
ticket, as illustrated in Figure 91, for that which he 
cannot supply at once. This shortage ticket should 
be in duplicate, one copy being retained in the store- 
room as a reminder to follow up delivery and obtain 



DELIVERIES FROM STOREROOM 



185 



FORM V 47 



NQT IN gTPQtt 



Date. 



Order No. 
Part No_ 



Requisition No. 



The above specified items. as called for bv 
above noted requisition are not now in stock 

Hold this slip until requisition is filled 
then return slip to stock room 



OTIS ELEVATOR COMPANY 



Figure No. 91 
Shortage ticket. 



186 STORING 

quickly the material to make good the shortage. The 
other copy of the shortage ticket goes to the shop, 
where it serves the following purpose. In keeping 
track of the progress of an order through the shop 
there are certain employees who are sometimes known 
as "chasers," their duty being to follow up the orders. 
When the chaser finds an order is at a standstill for 
lack of material the shop must have a shortage ticket 
showing that it has applied to the storeroom, but has 
been unable to procure the material. The chaser, 
on discovering this condition in the shop, will bring 
pressure to bear on the storekeeper to supply the de- 
ficiency. The storekeeper will likewise press the pur- 
chasing agent until the shortage is made good. In 
the discussion of maximum and minimum limits in 
Chapter Three the danger of shortages in the store- 
room was pointed out. In the case of jobbing orders 
calling for unusual and seldom-called-for material, 
they are unadvoidable. 

Apparent Shortages 

When the production department of a factory gives 
the storeroom a schedule of dates on which material 
will be needed, or furnishes an estimate of the prob- 
able rate of consumption, that is for the storekeeper's 
information and should enable him to keep his stock 
at just the right level to meet these requirements. 
The actual withdrawal of material from the stores would 
be through the medium of a requisition, as explained 
earlier in this chapter. 

A somewhat different condition exists when no 
schedule of the rate of consumption is given to the 
storeroom and when the storeroom is furnished with 



DELIVERIES FROM STOREROOM 



187 



copies of the production orders. These production 
orders take the place of requisitions and they may 



Form 461. 

SHORTAGE REQUISITION 


To Dept. No, 


Deliver with this Order to Dept. No. . 


To be osed for 










This Requisition must be Approved by Shop Superintendent before Material can 
be drawn from Stock Room. 


SBC 


BIN 


BAL 


DESCRIPTION 


























































































Approved: Signed 


Superintendent Foreman 

.... ::.. ... j 



Figure No. 92 
Used when insufficient material has been drawn from stores. 

accumulate to such an extent as to involve quite a 
problem in handling them. For instance, the pro- 



188 STORING 

duction orders may be issued many months in advance 
of the actual time the material may be needed. This 
creates a condition where the storeroom has recognized 
and authenticated applications for material without 
a sufficient quantity being in stock to fill them. There 
is, therefore, an apparent shortage. There is not an 
actual shortage, because the material is not always 
needed immediately the production order is issued. 
If it should not arrive in the storeroom before the 
production department called for it, then there would 
be a real shortage. 

The manner in which this problem should be handled 
would very largely depend on to what extent it oc- 
curs. Earlier in this chapter reference was made to 
shop orders, and it was suggested that the material 
for these could be taken out of the bins and placed 
in tote boxes. Now it may happen that the quantity 
so set aside may reach undue proportions and the 
storekeeper may feel justified in abstracting material 
from the boxes, if he needs it for other orders, and 
placing shortage tickets in them to show that he has 
done so. He would keep a record of these transactions 
through the copy of the shortage ticket, which he would 
keep in his office. 

The result of this is that the material has been 
charged out twice, but actually delivered only once, 
creating an "apparent" shortage. This method can 
only be adopted where there are few such transactions 
and then only when the articles are small and can be 
stored in tote boxes. 

It is better to have a systematic bookkeeping scheme 
to take care of it. This can be done by having a 
supplementary sheet attached to the perpetual in- 



DELIVERIES FROM STOREROOM 



189 



ventory sheet, or an additional column to record these 
particulars. For instance, suppose he has 1000 units 
of a certain article in the stores and his records show- 
that production orders have been issued which will 
absorb 1500. There is here an apparent shortage of 
500, but there is not a real shortage, because the shop 
may not need the articles for these particular orders 
for some weeks, or even months. 



form s» (rev. 4-j-i7) EXPENSE MATERIAL REQUISITION 

ORDER NO. [X ]rEO, NO. DATE 


TO DEFT. NO. DELIVER WITH THIS eWTWH TO DEPT. MO. 






QTY. 


PAT. SYM. 
NUMBER 
ORStZE 


DESCRIPTION 








































FOREMAN ,,,,. . 


.,,,,.. __ 



Figure No. 93 
Requisition for supplies. 

Issuing Supplies 

Everything delivered from the storeroom which is 
for expense account, that is, everything which is not 
for resale or does not become a component part of 
the finished product, should be requisitioned on a 
form differing from that used for raw material. This 
covers everything needed for repairs to buildings 
and upkeep of machines, also all articles used for 
general shop* expense. 

The storekeeper is, perhaps, the best man to have 



190 STORING 

control of these throughout an establishment; that is, 
requisitions for them should be subject to his approval. 
The department needing the supplies should be speci- 
fied, and whenever possible the exact purpose for which 
they are required. The closer these lines can be 
drawn the greater will be the saving in this class of 
overhead expense. 

Routine Clerical Work 

The discussion of routine work up to this point 
has covered the following features: 

1. The receipt of material. 

2. The various forms of inspection. 

3. The placing of material in properly designated 

receptacles and places. 

4. The delivery from the storeroom to authorized 

recipients. 

All of the transactions enumerated must have, 
as has been shown, some documentary evidence of 
their accomplishment. Samples of these documents 
have been illustrated in the two preceding chapters, 
and it now becomes necessary to show in what 
manner they are permanently recorded. In Chapter 
Eight the perpetual inventory was fully discussed. 
This is the complete stores record or ledger. By 
referring to the illustrations given of perpetual in- 
ventories (see Figures 60, 61, 62, and 64) it will be 
noticed that the form can be simply a record of re- 
ceipts and deliveries, or it can cover many other 
features, such as quantities ordered but not received, 
quantities requisitioned but not delivered, etc. 

Every entry on the inventory must have a document 
to show for it. For instance, the receiving clerk's 



DELIVERIES FROM STOREROOM 191 

slip would be used to post the quantity received, the 
requisitions would be used to post the quantities de- 
livered, a copy of the purchase order would indicate 
the material ordered. There are some other forms 
which will be alluded to later. What it is desired to 
emphasize is that all these documents must be jealously 
safeguarded until recorded. Even after this they 
should be kept in suitable binders until such time as 
there is no possibility of any need to refer to them. 
There are few factors which would tend to disorganize 
the keeping of the records; the main one is, perhaps, 
lost or misplaced documents. If these are carefully 
preserved and duly entered on the inventory, there 
cannot be much go wrong with the stores bookkeeping. 

Overlooking the Minimum 

This is, perhaps, the bugbear of a majority of store- 
keepers, and yet many of them allow their stock to 
run below the safety mark. Many schemes have been 
devised to prevent this contingency, but none of them 
are infallible and most of them simply make more 
clerical work. It would seem that in posting the 
entries on the inventory that one could not fail to 
observe the approach towards the minimum, but the 
clerks engaged on this work may not balance the 
accounts frequently, they may have their attention 
called to other duties, or they may not enter the items 
promptly and allow this work to accumulate. There 
must be sufficient clerical assistance on the inventory 
desk to make the postings immediately the documents 
arrive. With sufficient clerical help at this point 
there should never be any question of running past 
the minimum. 



192 



STORING 



All the auxiliary schemes, such as bin tickets and 
markers, are simply makeshifts. They are all started 
with the purpose of relieving the work on the perpetual 



o o 

WAHJto SCJCAft REFINING COMPANY 
EDCEWATER. N.J. 






REFINERY REQUISITION 




Required; 

FOR I 








































































DEPARTMENT REQUISITION 

signed ST. MAKE ORDER TO: 




APPRO VI 


O n u 




r\ r~\ r\ 


=0 











Figure No. 94 
Requisition on purchasing agent. 



inventory, but this work is the important work; 
nothing else can take its place and it cannot be slurred 
or neglected. It is better to recognize this fact and 
devote one's energies to accuracy in maintaining it. 



DELIVERIES FROM STOREROOM 193 

Purchase Requisitions 

When many clerks are employed posting the per- 
petual inventory it is advisable to suspend the work 
at a fixed hour every day, preferably late in the after- 
noon, and the clerks can then write up the purchase 
requisitions for such material as the records show has 
reached the minimum. This is the only safe way. 
If the clerks are permitted to make these requisitions 
at any time during the day convenient to themselves, 
they may or may not write them up. 

An illustration of a purchase requisition is given 
in Figure 95. All the particulars should be filled in 
by the clerks in the spaces shown. They should 
then be collected and given to the chief storekeeper 
for his signature, after which they are passed along 
to the purchasing agent. This method eliminates 
all delay, because the requisitions can be in the hands 
of the purchasing department ready for his action at 
the opening of his office the following morning. 

Some storekeepers make a practice of sending 
requisitions to the purchasing agent once a month. 
There may be some isolated instances where such a 
system could be followed, but it is not recommended 
as a general practice. If it is permissible it would be 
more applicable to requisitions for supplies than for 
materials. If any advantages are secured to the pur- 
chasing department by adopting this system it would 
have some weight in deciding the matter. 

Summary 

The man who knows least about his business is the 
man who usually fails, and the man who knows most 
seldom fails. To advance one's knowledge of the 



194 



STORING 



condition of that portion of one's investment repre- 
sented by the stock of goods and materials in the 
stores there is nothing of greater importance than a 
well-kept perpetual inventory. 



*o*m »■« (nev. 



Q 



charge to 
'account no. 

CLASS. 



o 



Q 
o 



Otis Elevator -Company 



PURCHASING AGENT; please is.3Ufi ORpER for the following for deliver 



TO WORK3 OEPARTMEf- 

CHARGING EACH ITEM TO ACCOUNTS INDICATED IN MARO 



DATE WANTED 



APPROVED;*- 



o*»»* •**•**#*•«,. 



Figube No. 95 
Storekeeper's requisition on purchasing agent. 



DELIVERIES FROM STOREROOM 



195 



ViD 



O 



o 



o 



196 STORING 

Perpetual inventories require perpetual attention. 
Authorities in accounting methods are practically 
united as a unit in their favor. The necessity for their 
accurate compilation is recognized. Lack of atten- 
tion on the part of employees, or insufficient help, 
is the only reason for the difficulties some people claim 
to have with them. The keeping of accurate records 
can be covered by a few simple rules. 

First: Nothing should be permitted to enter the 
storeroom unaccompanied by some form of advice, 
such as the receiving clerk's report (Figure 80) or 
the credit requisition (Figure 84). These documents 
are used to make the debit entries. 

Second: No material should be allowed to leave 
the stores without a properly drawn requisition which 
should clearly indicate the quantity taken from the 
storeroom. The requisition should be signed by the 
recipient of the material. 

Third: Accuracy in receiving and delivering the 
quantities specified and accuracy in posting the entries 
are all absolutely essential. 

Fourth: Perpetual inventories should be treated as 
cash is treated. Cash is verified often, or should be. 
A perpetual inventory should be verified as described 
in Chapter Eight. 

Fifth: The documents indicating the incomings and 
outgoings should be preserved a sufficient length of 
time to cover the period when they might be needed 
to check back; that is, until a physical count is made. 
If this should uncover any discrepancies, these docu- 
ments would be needed for reference. 



INDEX 



PAGE 

A 

Acounting and storing 180 

Accuracy in weighing 67 

Additional cost to the user of 

stored goods 5 

Apparent shortages 186 

Appliances for storeroom .... 67 

Auxiliary sources of supply . . 33 

B 

Balancing storage considera- 
tions 4 

Barrett multi-truck 80 

Bins and shelving 54 

Bins, closed type 58 

details of construction. . . 59 

Bookkeeping with machines. . 115 

Buying and storing 6 

C 

Capital outlay 12 

Carbon brushes, definition of. 42 

Catalogues 134 

card for indexing 140 

usefulness of 130 

Changes in values 11 

Charts and diagrams 142 

Chemical analyses 167 

Clerical records 97 

Closed type of bins 58 

Columbus lift truck 79 

Commercial definitions 38 

Commercial storage 2 



PAGE 

Conveyors 89 

for curves 90 

grades of 93 

Cost of storing 11 

Counting 100 

automatic 108 

by hand 101 

by weight and estimate. . 102 

even balance 104 

with proportional scales . 105 

machine beam 68 

counter type 69 

floor type 70 

dormant type 71 

Credit requisition 84 

D 

Department diagram 145 

Definitions 35 

commercial 38 

object of 39 

illustrations of 40 

obtaining 47 

card for recording 48 

Deliveries from storeroom . . . 177 

Delivery, the point of 148 

getting 150 

Deterioration 18 

Disadvantages of storing .... 4 
Distinction between storing 
for manufacturing and 

for resale 8 

Dual nature of storeroom work 97 
197 



198 



INDEX 



E 

Equipment of storeroom .... 51 

movable 67 

Examination and inspection. . 164 

Expense material requisition. 189 

of storing 14 

Extremes in storing 20 

F 

Factory storage 9 

Fluctuations in prices 16 

Following up shipments 151 



G 

Gravity conveyors, 
force of 



89 
95 



Importance of storage prob- 
lems 3 

Index card for specifications. 38 

Information for storekeeper. . 134 

Inspection and examination. . 164 

Inspection before delivery ... 165 

after delivery 165 

report 166 

Inspecting engineers 165 

Interest charges 13 

Insufficient facilities 12 

Insurance 14 

Issuing articles in sets 180 

Inventories 114 

physical 117 

perpetual 120 

illustrations of 

118, 119, 123, 127 

correct 121 

verification of 125 

and values 126 



Investment in storage 10 

Invoices and receipts 162 



Ladders for storeroom 65 

Ledger for stores 114 

Location of storeroom 51 

Losses in storing 18 



M 



Machine bookkeeping 151 

Manual operations 97 

Market and inventory prices. 17 
Material returned to store- 
room 171 

Maximum limit, meaning of. 26 

fixing 29 

and buying 30 

flexibility of 31 

increasing the 34 

Mechanical aids 95 

Minimum Unfit, meaning of. . 26 

fixing the 28 

flexibility of 30 

and production 28 



N 



Numbering bins and aisles. . . 53 



O 



2 
25 



Object of storing 

Obsolete materials 

Obsolete material sent to 

storeroom 173 

Order form used for receiving 

material 158 

Order on storeroom 178 

Overlooking the minimum. . . 191 



INDEX 



199 



Part numbers tabulated 43 

Partial receipts 159 

Physical deterioration 18 

Physical inventory 116 

Placing material in storeroom 164 

Plimpton elevating truck. ... 76 

Price market 17 

inventory 16 

Production problems 33 

Profits in storing 14 

Progress report 154 

Proportion of storage space . . 52 

Purchasing and receiving. . . . 163 

Purchase requisitions 193, 194 

Purchasing and the storeroom 32 

Psychology 24 

Purpose of storing 2 

R 

Racks 53 

with tote boxes 110 

for drill rods 62 

for tubes and rods 63 

construction of 64 

revolving 65 

Raw material for manufac- 
turers 15 

Reasons against storing 4 

Receiving clerk 155 

Receiving material 148 

Receiving report 161 

Receiving material into store- 
room 168 

Recording receipt of material 156 

Relation to buying 7 

Report of material to be sold . 174 

Requisitions and receipts. ... 157 

on storeroom 178 

on purchasing agent .... 192 
Reverse side of order used for 

recording receipts .... 162 



Rivets, definition of 41 

Root counter 107 

Routine clerical work 190 



S 



Scales 

Standardization 

Stationery forms 

storing 

Scientific storing 

Scrap sent to storeroom . . . 
Shelving and bins 

open type 

Shop orders as requisitions. 

Shortages 

Shortage ticket 

requisition 

Specifications 

technical 

Speculative elements 

Stacking barrels 

Storekeeper, the 

qualifications 

sphere of work ....... 

Storeroom order 

requisition 

Storing finished product. . . 
Stores department 

chart of 

outline of work 

Summary 

Supplies from stores 



71 

35 

175 

173 

12 

172 

54 

60 

182 

184 

185 

187 

35 

37 

10 

108 

130 

131 

132 

178 

181 

175 

142 

145 

146 

193 

189 



Temporary profits 18 

Testing materials 164 

report 169 

Time element 23 

Tote boxes, stacking 109 

nesting Ill 

Tracing shipments 149 



200 

Transportation and storing . 

charges 

Trucks 

lifting or elevating 

advantages of 

illustrations of 

Columbus lift 

Barrett 

Plimpton 

platforms for 



INDEX 

3 U 

163 

76 Utilizing space 65 

77 

77 w 
78 

79 Wealth in storage 1 

80 Weighing machines 71 

76 with dial 74 

85 Withdrawals from stores .... 182 



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